Economy Watch: ADP Report Points to Continued Job Growth
- Sep 01, 2016
Ahead of the Bureau of Labor Statistics official employment numbers for August, which will be released on Friday, Automated Data Processing releases its own tabulation of employment nationwide for the month, derived from ADP’s payroll data and which covers private employments. More often than not, ADP and the BLS don’t agree on the details, but ADP often points in the direction of the BLS report.
ADP reports that private sector employment increased by 177,000 jobs from July to August. Goods-producing employment was down by 6,000 jobs in August, following July’s losses of 5,000. Also, the construction industry lost 2,000 jobs, following July’s losses of 5,000 jobs. And manufacturing jobs were flat in August, after gaining 5,000 in the previous month.
Thus the entire gain last month, at least according to ADP, was in the service sector. Service-providing employment rose by 183,000 jobs in August, the company said, fewer than July’s 199,000 jobs, but still a reasonably healthy gain. Professional and business services did particularly well for the month, hiring 53,000, which is good news for the demand for office space.
“The American job machine continues to hum along,” asserted Mark Zandi, chief economist of Moody’s Analytics, which compiles the report for ADP. “Job creation remains strong, with most industries and companies of all sizes adding solidly to their payrolls. The U.S. economy will soon be at full employment.”