Employment rose by 198,000 in private sector

Employment rose by nearly 200,000 in the private sector in the USA from June to July 2013, says the July ADP National Employment report. Job gains were revised upwards from 188,000 to 198,000.

The employment figures are derived from ADP’s payroll data and identifies the change in total nonfarm employment in the private sector each month, on a seasonally-adjusted basis.

There were 22,000 new jobs in goods-producing industries in July, and 22,000 in construction.

However, manufacturing payrolls fell by 5,000.

The service industry had the largest employment gain since November 2012, with 177,000 new jobs. Employment rises in this sector were broad-based across a wide range of industries, with business/professional services adding 49,000 jobs during the month.

There were 45,000 more people working in trade, transportation and utilities. Financial services showed a modest gain of 4,000 jobs, compared to a 10,000 increase the month before.

Private sector non-farm employment increase, USA, July 2013:

Total U.S. Nonfarm Private Employment:


 • By Company Size 
 • Small businesses: 


· 1-19 employees


· 20-49 employees


 • Medium businesses: 


· 50-499 employees


 • Large businesses: 


· 500-999 employees


· 1,000+ employees


 • By Sector
• Goods producing


• Service providing


 • Industry Snapshot
• Construction


• Manufacturing


• Trade/transportation/utilities


• Financial activities


• Professional/business services


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

Carlos A. Rodriguez, president and chief executive officer of ADP, said:

“The U.S. private sector added a total of 200,000 jobs during the month of July, with businesses of all sizes contributing to the overall gain and small businesses generating the greatest share, just as they did in the previous month. Among industries tracked by the ADP National Employment Report, professional/business services showed the largest increase in July with the addition of 49,000 jobs, while construction added 22,000 jobs, a stronger gain than in June.”

Chief economist of Moody’s Analytics, Mark Zandi, commented:

“Job growth remains remarkably stable. Businesses are adding to payrolls in most industries and across all company sizes. The job market has admirably weathered the fiscal headwinds, tax increases and government spending cuts. This bodes well for the next year when those headwinds are set to fade.”

Change in Non-Farm Private Employment

Historical Trend – Change in Total Non-Farm Private Employment

Employment change according to company size

Small businesses, those with up to 49 employees added 82,000 jobs in July 2013. Medium-sized businesses (50-499 workers) added 60,000 jobs, and large companies increased jobs by 57,000.

According to the Wall Street Journal, Federal Reserve officials have said that any discussion regarding their bond-buying program will depend on a “substantial improvement in the labor markets”.