The ADP Research Institute in Roseland, New Jersey reported on Wednesday that more jobs than forecast had been created in August.
According to the institute, private payrolls increased by 237,000 this month, the highest increase since March. This was well ahead of expectations as the private sector was only expected to create 185,000 new jobs in August. In addition, the July total of jobs added was revised up from 178,000 to 201,000.
The ADP figures also show that small businesses which employ fewer than 50 staff added 48,000 jobs while companies employing between 50 and 499 workers increased their staff levels by 74,000. Large businesses with 500 or more employees added 115,000 jobs.
The goods-producing sector added a total of 33,000 jobs: 18,000 new jobs were created in construction while factories added an additional 16,000 new posts. The natural resources and mining sector lost 1,000 jobs.
The service-providing sector created a total of 204,000 new posts: trade, transport and utilities strengthened their workforce by adding an extra 56,000 posts, leisure and hospitality 51,000, education and health 45,000, professional and business services 39,000 and other services 5,000. The information sector shed 3,000 jobs.
“The job market continues to power forward. Job creation is strong across nearly all industries, company sizes,” Moody’s Analytics Chief Economist Mark Zandi said. However, he also warned that “Mounting labor shortages [were] set to get much worse.”
The Labor Department will issue its August figures on Friday.
The Bureau of Economic Analysis (BEA) also announced on Wednesday that it had revised its Q2 GDP figures as a result of higher consumer spending and business investment. The economy was thought to have grown by 2.6 percent between April and June but this figure has now been revised to 3 percent. Economists now predict similar growth in the third quarter (July-September). In the first quarter of this year, the economy only grew by 1.2 percent.
President Trump, who is traveling to Missouri today to talk about tax cuts and tax reform, will be delighted with the BEA figures. Indeed, the Trump administration needs a minimum of 3-percent growth to fund the planned tax cuts and infrastructure spending.Share