ADP Says Private Sector Added 218K Jobs In July
ADP's July National Employment Report, out Wednesday, showed private payrolls adding 218,00 jobs this month.
Mark Zandi, chief economist at Moody's Analytics, which collaborates with the payroll company on the report, noted in a statement on the results, 'The July employment gain was softer than June, but remains consistent with a steadily improving job market. At the current pace of job growth unemployment will quickly decline. Layoffs are still receding and hiring and job openings are picking up. If current trends continue, the economy will return to full employment by late 2016.'
ADP - Automatic Data Processing - has said that private companies added 245,000 and 191,000 jobs in November and December 2013 respectively. The results plummeted to 121,000 in January and 193,000 in February before finally crossing back over 200,000 (to 205,000) in April. ADP increased its May number to 214,000 from 179,000 and maintained it June reading of 281,000.
All major industries covered by ADP's report added jobs in July with professional and business services adding 61,000 jobs, trade/transportation/utilities adding 52,000 and construction adding 12,000. Manufacturing and financial activities industries were somewhat behind other industries adding 3,000 and 9,000 jobs respectively. With 202,00 jobs added service-providing businesses out-hired goods-producing business which added 16,00 jobs, both were down markedly from gains in June.
By company size, ADP showed businesses mid-sized businesses - those with 50 to 499 employees - adding the most jobs in July at 92,000. Businesses with less than 50 employees at 84,000 job with the smallest companies - those with less than 20 employees - doing almost 60% of small business hiring. Larger businesses added 41,000 jobs.
On Tuesday Paychex, another payroll provider that specializes in small scale employers, released its monthly Paychex | IHS Small Business Jobs Index. The index looks at changes in worker count at 350,000 companies. Each business in the sample group has fewer than 50 employees and 80% have fewer than 20. On a national basis the index increased modestly in July to 101.11, the gain comes after two months in a row of slight declines off of a record high in April. The barometer has increased 0.34% in the last 12-months.
'You are seeing housing come back in some areas of the country,' said Martin Mucci,CEO of Paychex, 'that has helped because a lot of small business jobs are around housing.' He also note that energy is helping build small business employment in Texas and now North Dakota. 'Areas like that are bringing consistent employment to people who are then buying other services,' he added. 'Discretionary spending, we think is up a little bit. The jobs that have increased are around personal services, laundry services, personal care, thing like that. When people spend on those kind of discretionary things I think there is a little more confidence. I think that is a positive sign.'
The mountain region - which includes Idaho, Nevada, Arizona, Utah, Montana, Wyoming, Colorado and New Mexico - had the highest year-over-year growth rate at 1.41% but the West North Central region had the strongest monthly gains thanks in large part to North Dakota. The west south central region - Texas, Oklahoma, Arkansas and Louisiana - had the biggest contraction at negative 0.26%.
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