Inside the ADP Report – June's job growth was...
Bottom Line: Not great, but there's a good reason for it being less than great. Here's a quote from Mark Zandi, chief economist at Moody's Analytics which works with ADP on producing the monthly private sector jobs report...“Business’ number one problem is finding qualified workers”...
In other words, we're continuing to see demand to hire outpace the ability for many businesses to find the qualified talent they need to fill current openings. This is the best type of jobs issue to have – except for frustrated employers.
According to the ADP private sector jobs report we added another 177,000 jobs in June. That was slightly below expectations, but we did receive a positive revision that put it essentially in-line with what economic wonks were looking for in June. Here are some key takeaways from the report:
We added 23,000 more private sector jobs in June of 2018 compared to June of 2017
At the halfway point for 2018 we've averaged 203,000 private sector jobs per month which is exceptional for this point in the cycle
As for where the jobs were added in June:
Small biz: +29k
Mid-Sized: +80k
Large: +69k
We're seeing smaller companies increasingly struggle to compete for talent in today's tight labor market. When we're talking about companies struggle to find qualified talent – it's most notable with businesses under 50 employees. They often have a more difficult time providing benefits equitable to larger competition and as much clarity on a career path over the longer run. Otherwise the growth was solid for mid-size and large companies.
As for industries leading the pack...
Education & Health +46k
Professional and business services: +33k
Leisure & Hospitality: +33k
Trade, transportation & utilities: +24k
Construction+13k
Until next time...