The non-farm private sector added 179,000 jobs in July according to the ADP National Employment Report, an increase from June’s revised growth of 176,000. Service-providing employment provided all of the month’s growth, while goods producing employment shed jobs during the month.
Small businesses with fewer than 50 employees added 61,000 jobs, down from 86,000 in June. Medium-sized businesses with 50-499 employees added 68,000 jobs, up from 56,000 last month. Large businesses added 50,000 jobs, up from 34,000 in June.
Service-providing employment rose by 185,000 jobs, 59,000 of which were in professional and business services. In contrast, goods-producing employment fell for the fourth consecutive month, shedding 6,000 jobs amid cuts in the construction industry.
“This month’s employment number falls short of the 12-month average primarily because of slowing in small business hiring,” said Ahu Yuldirmaz, vice president and head of the ADP Research Institute. “As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses.”
Read the ADP release.
