Inside the ADP Report - How many jobs we added in July & what it says about our economy:
Bottom Line: The July private sector jobs report from ADP provided a positive spin on mediocrity. What the heck does that mean? With 178,000 private sector jobs being added last month, the private sector jobs growth wasn't anything to feel great about. We need around a 125,000 jobs just to keep pace with population growth and there generally isn't anything to feel good about until we're posting numbers well above 200,000. However, there were additional nuggets of positive stuff to consider.
First, we had a positive revision of 33,000 jobs to June. That means that the actual number was a gain of 211k - which is decent. Also the breadth was improved from last month. In typical, healthy, economic conditions - small businesses lead in job creation. Small businesses are the best indicator of current economic conditions as smaller companies generally only hire when there's an economic need to do so. With that as the backdrop here are the job increases by company size:
- Small businesses: + 50,000
- Mid-size businesses: +83,000
- Large businesses: +45,000
Here's the next decent stat. Through the first seven months of 2017 we've averaged 217,000 new private sector jobs per month. Not only is that a solid record of jobs growth but it's a meaningful improvement over the tepid average of 178,000 jobs per month over the first seven months of 2016. In other words, private sector job growth has improved by 22% in 2017 so far. That's pretty good. More to come...