US pri­vate sec­tor adds 185,000 jobs in July: ADP

The Pak Banker - - BUSINESS -

The rate of hir­ing by US busi­nesses slowed in July, ac­cord­ing to a pri­vate sur­vey. But job gains re­mained at a solid level, which should help boost over­all eco­nomic growth.

Pay­roll pro­ces­sor ADP said Thurs­day that its sur­vey shows that com­pa­nies added 185,000 jobs last month, down from 229,000 in June. Job growth since early 2014 has lifted home sales to their strong­est pace in eight years. Con­struc­tion firms added 15,000 jobs last month. But low oil prices weighed on the man­u­fac­tur­ing sec­tor, which added just 2,000 jobs. Energy firms have cut back on their or­ders for equip­ment, ma­chin­ery and pipeline as oil prices have stayed be­low $50 a bar­rel.

The de­cline in oil prices "prob­a­bly will re­sult in ex­tended lay­offs in the energy sec­tor," said Mark Zandi, chief economist at Moody's An­a­lyt­ics. The re­sult of those lay­offs will be fewer job gains this year com­pared to 2015.

Hir­ing cooled off last month across sev­eral in­dus­tries. The busi­ness ser­vices sec­tor hired 42,000 work­ers in June, down from 61,000 in June. The pace of hir­ing also slipped in the fi­nan­cial in­dus­try and in the trade, trans­porta­tion and util­i­ties sec­tors. On Fri­day, the gov­ern­ment will is­sue its of­fi­cial jobs re­port for July. Econ­o­mists forecast it will show that em­ploy­ers added 225,000 jobs, and the un­em­ploy­ment rate held at 5.3 per­cent for the sec­ond straight month. The ADP sur­vey cov­ers only pri­vate busi­nesses, how­ever, and fre­quently di­verges from the of­fi­cial fig­ures.

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