Wednesday, August 4, 2010

ADP Employment Report: Private Payrolls Up 42,000

In July, according to the ADP Employment Report, private sector payrolls rose by 42,000. This followed an upwardly revised increase of 19,000 over the month of May (previously an increase of 13,000). July was the sixth consecutive month of private payroll expansion. Though this is vast improvement from a year ago when the labor market was still shedding jobs at a brisk pace, the speed of labor market recovery thus far has been very modest. Payrolls need to expand at about 100,000 to 150,000 per month in order to begin to drive down the unemployment rate. Considering that temporary census workers were continuing to be let go in July, there will be an additional drag on the Labor Department’s payroll number due out this Friday.

The increase over the month was driven by growth of service sector jobs, which increased by 63,000, putting the job growth rate on track with the past 6 months or so. Manufacturing lost 6,000 jobs; the first decline in six months. Goods producing jobs as a whole shed 21,000 payrolls.

10.08.04 (Source: Automatic Data Processing)

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