The economy added 156,000 private-sector jobs last month, according to the ADP National Employment Report. Prior to the report’s release, economists polled by Reuters forecasted the addition of 150,000 jobs to private payrolls.
“While we still see strength in the labor market, it has shown signs of weakening,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “A moderation in growth is expected as the labor market tightens further.”
“Steadily Slowing” Job Growth
“Job growth is healthy, but steadily slowing,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Small businesses are suffering the brunt of the slowdown. Hampering job growth are labor shortages, layoffs at bricks-and-mortar retailers, and fallout from weaker global trade.”
Small businesses added only 11,000 jobs last month, while medium-sized and large businesses added 67,000 and 78,000 jobs respectively.
Several industries filled positions last month, including:
- Professional/business services (+44,000 jobs)
- Health care (+35,000 jobs)
- Trade/transportation/utilities (+27,000 jobs)
- Leisure/hospitality (+26,000 jobs)
- Construction (+15,000 jobs)
Looking Ahead to the Labor Report
The jobs report from the Labor Department comes out Friday morning. It will provide information on how many jobs companies added to public and private payrolls, as well as updated wage growth numbers and the current unemployment rate. Economists surveyed by Dow Jones predict the addition of 165,000 jobs to nonfarm payrolls and an unemployment rate of 3.6 percent — a 50-year low.
Nominal wage growth has grown over the past year, according to the PayScale Index, which measures the change in wages for employed U.S. workers. However, the buying power of workers’ pay has weakened. The Index shows that real wages are 9.8 percent lower than in 2006.
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