The latest monthly survey from ADP shows that hiring in the private-sector jobs increased by about 200,000 between June and July. ADP is a povider of human capital management solutions, including payroll management systems used by many businesses and payroll service providers.
The ADP National Employment Report, which was released on Thursday, is produced each month in collaboration with Moody’s Analytics, and is derived from ADP’s actual payroll data and measures the change in total nonfarm private employment each month on a seasonally-adjusted basis. June’s job gain was revised upward from 188,000 to 198,000.
Also on Thursday, the Department of Labor reported that, for the week ending July 27, initial claims for unemployement benefits fell to 326,000. This represents the lowest weekly total since January 2008.
Some analysts, however, are pointing out that seasonal issues during the summer make the labor market a little more challenging to assess. Guy Berger, an employment expert and economist at RBS Securities Inc. suggested the job growth is stronger than expected, but that lower unemployment claims are also a result of fewer auto plants shutting down for retooling this summer, or shutting down for a shorter time-frame.
The largest growth was in service-based industries, which added 177,000 jobs, while Professional and business services, goods-producing and construction payrolls saw lesser growth. Manufacturing jobs fell slightly.
"The U.S. private sector added a total of 200,000 jobs during the month of July, with businesses of all sizes contributing to the overall gain and small businesses generating the greatest share, just as they did in the previous month," said Carlos A. Rodriguez, president and chief executive officer of ADP. "Among industries tracked by the ADP National Employment Report, professional/business services showed the largest increase in July with the addition of 49,000 jobs, while construction added 22,000 jobs, a stronger gain than in June."
Mark Zandi, chief economist of Moody’s Analytics, said, "Job growth remains remarkably stable. Businesses are adding to payrolls in most industries and across all company sizes. The job market has admirably weathered the fiscal headwinds, tax increases and government spending cuts. This bodes well for the next year when those headwinds are set to fade.”