U.S. Added 281K Private Payrolls in July; Services, Trade/Transportation Led Gains - ADP

(Updated - July 2, 2014 8:22 AM EDT)

July ADP Employment expanded 281,000 versus consensus expectations of 205,000 additions.

UPDATE - More from ADP's press release:

Private sector employment increased by 281,000 jobs from May to June according to the June ADP National Employment Report. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP, a leading global provider of Human Capital Management (HCM) solutions, 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.

June 2014 Report Highlights*

View the ADP National Employment Report Infographic at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 281,000

• By Company Size
  • Small businesses: 117,000
    • 1-19 employees 66,000
    • 20-49 employees 51,000
  • Medium businesses: 115,000
    • 50-499 employees 115,000
  • Large businesses: 49,000
    • 500-999 employees 16,000
    • 1,000+ employees 32,000
• By Sector
  • Goods-producing 51,000
  • Service-providing 230,000
• Industry Snapshot
  • Construction 36,000
  • Manufacturing 12,000
  • Trade/transportation/utilities 50,000
  • Financial activities 11,000
  • Professional/business services 77,000

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

Goods-producing employment rose by 51,000 jobs in June, up from 31,000 jobs gained in May. The construction industry added 36,000 jobs over the month, more than double the May number. Meanwhile, manufacturing added 12,000 jobs in June, up slightly from last month.

Service-providing employment rose by 230,000 jobs in June, up from 148,000 in May. The ADP National Employment Report indicates that professional/business services contributed 77,000 jobs in June, up from 46,000 in May. Expansion in trade/transportation/utilities grew by 50,000, up from May's 36,000. The 11,000 new jobs added in financial activities was about double last month's number.

"The June jobs number is a welcome boost," said Carlos Rodriguez, president and chief executive officer of ADP. "The number of construction jobs added was particularly encouraging, representing the highest total in that industry since February of 2006."

Mark Zandi, chief economist of Moody's Analytics, said, "The job market is steadily improving. Job gains are broad based across all industries and company sizes. Judging from the job market, the economic recovery remains fully intact and is gaining momentum."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201407/MOD-260845_Chart1.ChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201407/MOD-260846_Chart2.HistoricalTrendChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here: http://media.marketwire.com/attachments/201407/MOD-260847_Chart3.ChangeinNonfarmPrivateEmploymentbySelectedIndustry.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here: http://media.marketwire.com/attachments/201407/MOD-260848_Chart4.ChangeinNonfarmPrivateEmploymentbyCompanySize.jpg

Payroll growth for businesses with 49 or fewer employees increased by 117,000 jobs in June. That's up from 82,000 in May and represents the highest number since February 2012. Job growth rebounded over the month for medium-sized and large firms. Employment among medium-sized companies with 50-499 employees rose by 115,000, up from 62,000 in May. Employment at large companies -- those with 500 or more employees -- increased by 49,000, up from 36,000 the previous month. Companies with 500-999 employees added 16,000 jobs after shedding 3,000 in May.

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 May total of jobs added remained unchanged at 179,000.

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 July 2014 ADP National Employment Report will be released at 8:15 a.m. ET on July 30, 2014.

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