Inside June's private sector jobs (ADP) report:

posted by Brian Mudd - 

Inside June's private sector jobs (ADP) report:

Bottom Line: There wasn't a lot to like about the jobs numbers posted for June in the ADP Report released yesterday. After a few months of the private sector jobs report from ADP (with Moody's)looking quite a bit better than the Government jobs report...this one was pretty disappointing.  Here were the highlights:

  • 158,000 jobs added (below the 185,000 expected and generally a weak number)
  • negative revision of 23,000 jobs from the May report

We need to add about 125,000 new jobs per month to keep pace with population growth, so that means that we barely created more jobs than needed to keep pace. What's more is that in June of 2016 we added a 172,000 jobs making this the first month of 2017 that trailed the hiring pace of last year. Hopefully this doesn't become a trend. The most concerning aspect of the report is how significantly small business job growth dropped off. Here are the jobs added by business size:

  • Small (under 50 employees): 17,000
  • Mid-sized (50-499 employees): 91,000
  • Large (500+ employees): 50,000

The mid size job growth was pretty decent and the large company growth was fine but the small business job growth had averaged 86,000 new jobs for the first five months of the year and fell off of a cliff in June. That's important because small businesses are typically the leader in job growth in healthy economies. 

Brian Mudd

Brian Mudd

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