America’s nonfarm, private sector small businesses put out hiring signs once again in July, adding an estimated 84,000 positions to their payrolls, according to ADP.
ADP’s July employment report looks at the overall hiring rate in America for employers of all size and breaks out a subset analysis of small business hiring.
Overall, the economy added 218,000, nonfarm, private sector jobs in July, which marks the four straight month of employment gains above the 200,000 mark.
Although the overall numbers are technically down from June, Mark Zandi, chief economist at Moody’s Analytics, which prepares the monthly report, says they remain indicative of steady job market growth.
On the small business front, ADP and Moody’s look at private sector employers with less than 50 employees broken down into two subsets: 1-19 employees and 20-49 employees.
The monthly study pulls report data that is collected for pay periods that can be interpolated to represent the week of the 12th each month. The processing uses statistical methodologies that are similar to those employed by the U.S. Bureau of Labor Statistics. The findings are modified to represent national employment levels, not strictly ADP’s American clientele base.
The highlights of hiring by small businesses in July show strong increases among both subsets and greater growth in the service providing segments versus the goods producing. Here are a few of the highlights:
July Job Additions
By Business Size
- 1-19 employees, a gain of 34,000 jobs
- 20-49 employees, a gain of 50,000 jobs
Industry Type 1-49 Employees
- Goods producers, 6,000 new jobs
- Service providers, 78,000 new jobs
Industry Type 1-19 Employees
- Goods producers, 3,000 jobs
- Service providers, 32,000 jobs
Industry Type 20-49 Employees
- Goods producers, 3,000 jobs
- Service providers, 47,000 jobs
ADP’s study looks at the private sector job market as a whole, focusing on employers, small to large, including such industries as construction, manufacturing, trades, financial and professional and business services. The small business jobs report breaks out data related solely to private sector firms.
While July’s overall gain was modest compared with June’s, Zandi said the current pace of growth on the whole is encouraging. As job openings rise, the number of layoffs is also on the decline, creating a more robust American jobs market.
“If the current trends continue, the economy will return to full employment by late 2016,” Zandi concluded in July’s overall private sector employment report.
