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US jobs market shows signs of weakening, but adds 156,000 jobs: ADP

July 31, 2019

The US labor market remains strong with the private sector adding 156,000 jobs this month, but it shows signs of flagging, according to the ADP National Employment Report released today. Small businesses are bearing the brunt of the slowdown.

“While we still see strength in the labor market, it has shown signs of weakening,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “A moderation in growth is expected as the labor market tightens further.”

Small businesses added 11,000 jobs this month while midsize and large firms both added much more. Midsize firm increased employment by 67,000 while large companies raised the number of jobs by 78,000.

“Job growth is healthy, but steadily slowing,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report in collaboration with the ADP Research Institute. “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.”

The 156,000 jobs added this month from the previous is better than the 112,000 added in June. However, the US had added 284,000 jobs in July 2018.

Also in the report: The service-providing sector added the lion’s share of jobs this month, 146,000, with professional/business services adding 44,000 and healthcare/social assistance adding 35,000.

Meanwhile, the goods-producing sector added 9,000 jobs. Employment in construction rose by 15,000 and manufacturing added 1,000 jobs, but the natural resources/mining sector shed 6,000 positions.

The ADP National Employment report is derived from anonymous payroll data of ADP client companies and measures nearly 24 million US workers. The report is produced by the ADP Research Institute in collaboration with Moody’s Analytics Inc.

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