A new report from ADP showed that 178K private-sector payrolls were added to the economy in July. That was down considerably from the previous month but only because the June gain was revised sharply higher from +158K to +191K. More importantly, the less volatile 3-month average for ADP’s hiring estimate lifted to +201K in July, an overall healthy pace of job creation that should maintain the downward trend in unemployment. Under the hood, most of the private-sector payrolls added last month were as usual found in the services sector (+174K), including large gains in the “professional & business” and “education & health” arenas. Payrolls in the goods-producing sector lifted by 4K in July, as mining and construction gains more than offset manufacturing losses. As for small businesses, firms with 1-49 employees added 50K payrolls in July. That accounted for 28 percent of all the private-sector payrolls added last month and was a welcome rebound following June’s paltry gain.
Sources: Econoday, ADPPost author: Charles Couch