Prior to this morning’s release of the ADP National Employment Report, economists were predicting average gains of 175,000 jobs to private-sector payrolls, according to Reuters. The report showed that employers added 177,000 jobs, just beating expectations.
“Job growth in August was stable and consistent with levels from previous months as consumer conditions improve,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “Continued strong growth in service-providing jobs is offset by weakness in goods-producing areas.”
Goods-producing employment declined by 6,000 jobs last month. Construction shed 2,000 jobs, while manufacturing remained flat.
Service-providing employment increased by 183,000 jobs last month, after adding 199,000 jobs in July. Growing industries included professional/business services (+53,000 jobs), trade/transportation/utilities (+26,000 jobs), and financial activities (+15,000 jobs).
Large businesses with 500 or more employees added the most jobs last month—70,000 jobs total. Medium-sized businesses with between 50 and 499 employees added 44,000 jobs, and small businesses with fewer than 50 employees added 63,000 jobs.
“The American job machine continues to hum along. Job creation remains strong, with most industries and companies of all sizes adding solidly to their payrolls,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “The U.S. economy will soon be at full employment.”
Economists polled by Reuters predict that Friday’s report from the Bureau of Labor Statistics, which includes all non-farm payrolls and also provides information on unemployment and wage growth, will show the addition of 180,000 jobs in August, and an unemployment rate of 4.8 percent. The PayScale Index, which measures the change in wages for employed U.S. workers, forecasts 1.6 percent year-over-year growth for Q3 2016.
Tell Us What You Think
What do you think Friday’s report will show? Talk to us on Twitter or leave a comment.
Leave a Reply