ADP Employment Report (08/05/15)

Private sector employment increased by 185,000 jobs from June to July, according to Automatic Data Processing. Payrolls for businesses with 49 or fewer employees increased by 59,000 jobs in July, half of the June number. Employment among companies with 50-499 employees increased by 62,000 jobs, down from 78,000 in June. Employment gains at large companies—those with 500 or more employees—increased sharply from June, adding 64,000 jobs in July, up from 34,000. Companies with 500 to 999 employees added 17,000 jobs after adding 28,000 jobs in June. Companies with over 1,000 employees added 47,000 jobs, almost eight times the weak 6,000 added the previous month.

Goods-producing employment rose by 8,000 jobs in July, after adding 13,000 in June. The construction industry added 15,000 jobs in July, down from 17,000 in June. Meanwhile, manufacturing added 2,000 jobs in July, after gaining 9,000 in June. Service-providing employment rose by 178,000 jobs in July, down from 216,000 in June.

“Job growth is strong, but it has moderated since the beginning of the year,” says Mark Zandi, chief economist of Moody’s Analytics. “Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown. Nonetheless, even at this slower pace of growth, the labor market is fast approaching full employment.”