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US adds 237,000 private sector jobs, largest increase in five months, ADP reports

August 30, 2017

US private-sector employment rose by 237,000 jobs in August from July, according to the ADP national employment report. August’s gain exceeded the 201,000 gain in July, which was revised upward from 178,000.

Reuters reported the increase was the biggest monthly increase in five months and exceeded expectations; its survey of economists had forecast the report would show a gain of 183,000 jobs.

“In August, the goods-producing sector saw the best performance in months with solid increases in both construction and manufacturing,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “Additionally, the trade industry pulled ahead to lead job gains across all industries, adding the most jobs it has seen since the end of 2016. This could be an industry to watch as consumer spending and wage growth improves.”

The number of goods-producing jobs rose by 33,000 on gains of 18,000 construction jobs and 16,000 manufacturing jobs; natural resources/mining jobs decreased by 1,000.

Service-providing jobs rose by 204,000, including 56,000 jobs in trade/transportation/utilities and 51,000 jobs in leisure/hospitality.

Large businesses added 115,000 jobs in August. Midsize businesses added 74,000 jobs and small businesses added 48,000 jobs.

“The job market continues to power forward. Job creation is strong across nearly all industries, company sizes,” Mark Zandi, chief economist of Moody’s Analytics. “Mounting labor shortages are set to get much worse. The initial BLS employment estimate is often very weak in August due to measurement problems, and is subsequently revised higher. The ADP number is not impacted by those problems.”