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US adds 185,000 jobs in July, ADP reports

August 05, 2015

US private sector employment rose by approximately 185,000 jobs in July from June, according to the ADP national employment report produced by Automatic Data Processing Inc. (NASD: ADP) in collaboration with Moody’s Analytics. July’s job gains fell short of June’s 229,000 additions — a downward revision from a previously reported increase of 237,000 jobs.

Large businesses with more than 500 employees posted their strongest job gains since last December and almost doubled the June number.

“Job growth is strong, but it has moderated since the beginning of the year,” said Mark Zandi, chief economist of Moody’s Analytics. “Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown. Nonetheless, even at this slower pace of growth, the labor market is fast approaching full employment.”

Small businesses added 59,000 jobs in July and midsize businesses added 62,000 jobs, according to the report.

Large businesses with more than 1,000 employees added 47,000 jobs, the group’s strongest job gains since last December and almost double the June number. Businesses with 500 to 999 employees added 17,000 jobs.

By sector, the service-providing sector added approximately 178,000 jobs, a decrease from 216,000 in June. Professional/business services contributed 42,000 jobs in July, down from June’s 61,000. Trade/transportation/utilities jobs grew by 25,000, just over half of the previous month’s 47,000. The 10,000 new jobs added in financial activities was a drop from last month’s 16,000.

The goods-producing sector gained approximately 8,000 jobs after adding 13,000 in June. The construction industry added 15,000 jobs in July, down from 17,000 last month. The manufacturing sector added 2,000 jobs in July, after a gain of 9,000 in June.