ADP Employment Change (Jul) 179K vs 170K Expected

(Updated - August 3, 2016 8:16 AM EDT)

• ADP Employment Change (Jul) 179K vs 170K Expected

Private sector employment increased by 179,000 jobs from June to July according to the July ADP National Employment Report. Broadly distributed to the public each month, free of charge, theADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

July 2016 Report Highlights*

View the ADP National Employment Report Infographic atwww.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 179,000

• By Company Size
  • Small businesses: 61,000
    • 1-19 employees 22,000
    • 20-49 employees 39,000
  • Medium businesses: 68,000
    • 50-499 employees 68,000
  • Large businesses: 50,000
    • 500-999 employees 16,000
    • 1,000+ employees 33,000
• By Sector
  • Goods-producing -6,000
  • Service-providing 185,000
• Industry Snapshot
  • Construction -6,000
  • Manufacturing 4,000
  • Trade/transportation/utilities 27,000
  • Financial activities 11,000
  • Professional/business services 59,000

* Sum of components may not equal total, due to rounding.

• Franchise Employment**
  • Franchise jobs 21,200

**Complete details on franchise employment can be found here.

Payrolls for businesses with 49 or fewer employees increased by 61,000 jobs in July, down from 86,000 in June. Employment at companies with 50-499 employees increased by 68,000 jobs, up from last month's 56,000. Employment at large companies -- those with 500 or more employees -- increased by 50,000, up from June's 34,000. Companies with 500-999 employees added 16,000 and companies with more than 1,000 employees added 33,000 in July.

Goods-producing employment was down by 6,000 jobs in July, following June losses of 28,000. The construction industry lost 6,000 jobs, following June losses of 4,000 jobs. Meanwhile, manufacturing gained 4,000 jobs after losing 15,000 the previous month.

Service-providing employment rose by 185,000 jobs in July, fewer than June's 203,000 jobs. The ADP National Employment Report indicates that professional/business services contributed 59,000 jobs, down from June's 78,000. Trade/transportation/utilities increased by 27,000 jobs in July, down from 41,000 jobs added the previous month. Financial activities added 11,000 jobs, following last month's gain of 9,000 jobs.

"This month's employment number falls short of the 12-month average primarily because of slowing in small business hiring," said Ahu Yildirmaz, 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."

Mark Zandi, chief economist of Moody's Analytics, said, "Job growth remains strong, but is moderating as the economy approaches full employment. Businesses are having a more difficult time filling open job positions, which are near record highs. The nation's biggest economic problem will soon be the lack of available workers."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here:http://media.marketwire.com/attachments/201608/MOD-98198_Chart1.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here:http://media.marketwire.com/attachments/201608/MOD-98199_Chart2.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here:http://media.marketwire.com/attachments/201608/MOD-98200_Chart3.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here:http://media.marketwire.com/attachments/201608/MOD-98201_Chart4.jpg

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The June total of jobs added was revised up from 172,000 to 176,000.

To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.adpemploymentreport.com.

The August 2016 ADP National Employment Report will be released at 8:15 a.m. ET on August 31, 2016.

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