Private sector added less jobs than expected

Wednesday, Aug 05 2015

Private sector employment increased by 185,000 jobs from June to July, missing predictions on increase by 216,000. Payrolls for businesses with 49 or fewer employees increased by 59,000 jobs in July, half of the June number. Employment among companies with 50-499 employees increased by 62,000 jobs, down from 78,000 the previous month.

Employment gains at large companies – those with 500 or more employees – increased sharply from June, adding 64,000 jobs in July, up from 34,000. Companies with 500-999 added 17,000 jobs after adding 28,000 jobs in June. Companies with over 1,000 employees added 47,000 jobs, almost eight times the weak 6,000 added the previous month.

"July employment growth was slower than June, but is still in line with what we have seen since the first of the year,” said Carlos Rodriguez, president and chief executive officer of ADP. “Notably, large businesses with more than 500 employees had their strongest job gains since last December and were almost double the June number.” Mark Zandi, chief economist of Moody’s Analytics, said.

“Job growth is strong, but it has moderated since the beginning of the year. Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown. Nonetheless, even at this slower pace of growth, the labor market is fast approaching full employment.”

After the data USD was pushed lower against its major rivals. Euro is currently being traded around 1.09 handle, Sterling is few points above 1.5630 level, while Aussie is around 0.7380 area. Later today, Trade Balance data is scheduled for a release.

Last modified on Wednesday, 05 August 2015

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