ADP report: Job growth is healthy, but steadily slowing

The nation’s private sector employment grew by a healthy 156,000 jobs in July, but is steadily decreasing, according to the latest report by Roseland-based ADP.

The payroll and human services company said in its monthly ADP National Employment Report that total nonfarm private employment rose from June to July.

“Job growth is healthy, but steadily slowing. Small businesses are suffering the brunt of the slowdown. Hampering job growth are labor shortages, layoffs at bricks-and-mortar retailers, and fallout from weaker global trade,” Mark Zandi, chief economist of Moody’s Analytics, said.

In terms of company size, large businesses with 500 or more employees dominated the month, adding 78,000 new positions, while medium-sized businesses of 50-499 workers added 67,000 roles and small businesses of under 50 workers added 11,000.

Among the top two sectors, ADP said, those in the service-producing industry added 146,000 jobs, while the goods-producing industry added 9,000 positions.

In the services industry, professional and business services was the top gainer, adding 44,000 new roles. Next up was education and health services, which saw a growth of 37,000 new positions; trade/transportation/utilities added 27,000, leisure and hospitality added 26,000; financial activities added 11,000; and other services added 6,000. The only industry to lose jobs in this sector was information, which lost 5,000 positions.

In the goods-producing sector, the construction industry added the most with 15,000 new jobs. Natural resources and mining lost 6,000 while manufacturing gained 1,000.

“While we still see strength in the labor market, it has shown signs of weakening,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said. “A moderation in growth is expected as the labor market tightens further.”