Private sector added 156,000 jobs in July, says ADP
Private sector employment rose by 156,000 jobs in July, according to payroll giant ADP, even as some small businesses lost jobs.
Small businesses with between one and 19 employees subtracted 18,000 jobs, although that was offset by small businesses with between 20 and 49 employees that gained 29,000 jobs, for a net total of 11,000 jobs gained at small businesses in July. Medium businesses with between 50 and 499 employees added 67,000 jobs. Large businesses added 78,000 jobs, including 18,000 at companies with between 500 and 999 employees, and 61,000 at larger businesses with 1,000 employees or more.
The goods-producing sector added 9,000 jobs in July, while the service-providing sector gained 146,000 jobs, including 44,000 in professional and business services such as accounting, tax preparation and other types of services. Franchises gained 41,900 jobs in July.
"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, in a statement. "A moderation in growth is expected as the labor market tightens further."
ADP also revised upward its June total of jobs added from 102,000 to 112,000.
"Job growth is healthy, but steadily slowing,” said Mark Zandi, chief economist of Moody's Analytics, which compiles the monthly national employment 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."