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US private-sector job growth remains strong in August, ADP reports

August 31, 2016

US private-sector employment rose by 177,000 jobs in August from July, according to the ADP national employment report.

“Job growth in August was stable and consistent with levels from previous months as consumer conditions improve,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Continued strong growth in service-providing jobs is offset by weakness in goods-producing areas.”

The number of goods-producing jobs fell by 6,000, following July losses of 5,000. Service-providing jobs rose by 183,000, fewer than July’s 199,000 jobs.

Large businesses added 70,000 jobs, up from the 56,000 added in July. Midsize businesses added 44,000 jobs in August, down from last month’s gain of 71,000.

Small businesses added 63,000 jobs in August, down from 68,000 in July.

MarketWatch reports employment that came in slightly better than Wall Street expectations, potentially adding more reasons for the Federal Reserve to follow through with talk of lifting interest rates.

“The American job machine continues to hum along,” said Mark Zandi, chief economist of Moody's Analytics. “Job creation remains strong, with most industries and companies of all sizes adding solidly to their payrolls. The US economy will soon be at full employment.”

The ADP National Employment report is produced by ADP (NASD: ADP) in collaboration with Moody’s Analytics.