ADP Employment Change 190K vs 200K Expected

ADP Employment Change for August was reported at 190,000, below the 200,000 expected by economists. The July total of jobs added was revised from 185,000 to 177,000.

Total U.S. Nonfarm Private Employment: 190,000

• By Company Size
  • Small businesses: 85,000
    • 1-19 employees 50,000
    • 20-49 employees 35,000
  • Medium businesses: 66,000
    • 50-499 employees 66,000
  • Large businesses: 40,000
    • 500-999 employees 5,000
    • 1,000+ employees 34,000
• By Sector
  • Goods-producing 17,000
  • Service-providing 173,000
• Industry Snapshot
  • Construction 17,000
  • Manufacturing 7,000
  • Trade/transportation/utilities 28,000
  • Financial activities 13,000
  • Professional/business services 29,000

Payrolls for businesses with 49 or fewer employees increased by 85,000 jobs in August, an increase of over one-third from July. Employment among companies with 50-499 employees increased by 66,000 jobs, 5,000 more than the previous month. Employment gains at large companies -- those with 500 or more employees -- fell from July, adding 40,000 jobs in August, down from 53,000. Companies with 500-999 added 5,000 jobs. Companies with over 1,000 employees added 34,000 jobs.

Goods-producing employment rose by 17,000 jobs in August, more than double the 7,000 gained in July. The construction industry added 17,000 jobs in August, up from 15,000 last month. Meanwhile, manufacturing added 7,000 jobs in August, after gaining only 1,000 in July.

Service-providing employment rose by 173,000 jobs in August, up slightly from 170,000 in July. The ADP National Employment Report indicates that professional/business services contributed 29,000 jobs in August, up 3,000 from July. Trade/transportation/utilities grew by 28,000, down from 34,000 the previous month. The 13,000 new jobs added in financial activities was a gain from last month's 10,000.

"The job growth numbers for August improved slightly from July," said Carlos Rodriguez, president and chief executive officer of ADP. "The employment gains for the month are in line with the year to date average."

Mark Zandi, chief economist of Moody's Analytics, said, "Recent global financial market turmoil has not slowed the U.S. job market, at least not yet. Job growth remains strong and broad-based, except in the energy industry, which continues to shed jobs. Large companies also remain more cautious in their hiring than smaller ones."

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