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Job Market Adds 218,000 Jobs in July


The ADP National Employment Report for July 2014 shows that job growth continued throughout the month in yet another step along the way to full economic recovery. The report followed nonfarm private employment for approximately 24 million workers in the United States, who saw the addition of 218,000 jobs in July. The increase continues a trend that has been ongoing for several months.

Although July's gains number proved not to be as impressive as the preceding June's, the additions to the jobs market are still highly positive, representing "the fourth straight month of employment gains above 200,000," according to ADP's president and CEO, Carlos Rodriguez.

The report breaks down the addition of jobs in the month by company size, industry, and by product, which revealed that the businesses most likely to add jobs were mid-sized, service-providing companies. Large businesses that had 500 employees or more contributed 41,000 new jobs (or about 19 percent) out of the 218,000 jobs added. Mid-sized businesses with 50 to 499 employees added 92,000 jobs and small businesses with fewer than 50 employees contributed 84,000 jobs, or about 42 percent and 39 percent, respectively.

Companies that produced goods instead of services added a mere 16,000 jobs, or about 7 percent compared to the 202,000 jobs added by service-providing businesses. When sorted by industry category, companies that offered business services had the greatest gains, followed by companies in the trade and transportation industry. Companies in the manufacturing industry accounted for only 3000 of the 218,000 jobs added.

Mark Zandi, the chief economist of Moody's Analytics, says that this trend of high-but-falling job growth indicates a known pattern of improving job markets. According to Zandi, "the economy will return to full employment by late 2016" if employment gains continue as projected. The consistently-high numbers come at a time when other indicators of market health are also improving on a month-to-month basis, which serve to bolster the optimistic predictions of wider market recovery in or by 2017.

About Author: Cody Galuardi


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