ADP data show small businesses slowed down the pace of hiring in July, as the overall job market picked up steam.
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According to the latest ADP National Employment Report, small businesses added 84,000 of the total 218,000 private-sector jobs created in July. By contrast, small businesses with fewer than 50 employees hired 117,000 workers in June. The Labor Department will release its latest jobs data on Friday.
Despite the deceleration, Moody’s Analytics Chief Economist Mark Zandi said the job market is humming.
“We’re on track to create 3 million jobs this year … a pretty good year by any historical standard,” said Zandi.
ADP President and CEO Carlos Rodriguez agreed with Zandi, noting that July’s report is just the latest in a string of solid reports.
"Although down from June, the [overall private-sector] July jobs number marks the fourth straight month of employment gains above 200,000,” said Rodriguez.
While Zandi said the private-sector job gains were broad-based, across all industries, small businesses in service industries continue to add jobs at a much quicker rate than those producing goods. Service-providing businesses added 78,000 new positions in July, while goods-producing companies added just 6,000.
He also expects a pickup of activity in the housing market to generate more manufacturing jobs.
According to private payroll processor ADP, the monthly ADP National Employment Report measures nearly 24 million private workers in the United States.