U.S. companies added just 218,000 new private jobs in July, says ADP.
This was a bit lighter than the 230,000 expected by economists.
This is down from the 281,000 added in June.
“The July employment gain was softer than June, but remains consistent with a steadily improving job market,” said Moody’s Analytics’ Mark Zandi. “At the current pace of job growth unemployment will quickly decline. Layoffs are still receding and hiring and job openings are picking up. If current trends continue, the economy will return to full employment by late 2016.”
Good producing companies added 16,000 jobs while services providers added 202,000.
Small businesses (1-49 employees) were responsible for 84,000 of those jobs.
Despite the miss, Wall Street remains optimistic.
“We’re not too concerned that July’s rise in the ADP was smaller than June’s 281,000 increase,” said Capital Economics’ Paul Dales. “Changes in employment always bounce around from one month to the next. The main point is that job growth improved in the first half of the year and appears to have remained strong going into the second half.”
“In the context of the strength in employment growth since the start of the year, this report points to further payrolls gains of 215K to 235K in July, which will mark the 6th consecutive months of jobs growth in excess of 200K,” said TD Securities’ Millan Mulraine. “This will be further confirmation of the sustained pick-up in the labour market, and it will provide further confidence to the Fed in the sustainability of the economic recovery.”
The BLS’s official July jobs report comes out at 8:30 a.m. ET on Friday. Economists are looking for 231,000 new nonfarm payrolls driven by 230,000 private payrolls.
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