U.S. Private Sector Adds 190,000 Jobs, Missing Views
American workers wait on a jobs fair line. (PHOTO: REUTERS)
The closely-watched ADP National Employment Report revealed U.S. private sector job creation in August was at 190,000, missing economists’ expectations. Economists surveyed by Reuters expected the report by the payrolls processor on Wednesday to show a gain of 201,000 jobs.
“The job growth numbers for August improved slightly from July,” said Carlos Rodriguez, president and chief executive officer of ADP. “The employment gains for the month are in line with the year to date average.”
Private payroll gains in July were revised down to 177,000 from an originally reported 185,000 increase. The report is jointly developed with Moody’s Analytics, and is released ahead of the U.S. Labor Department’s non-farm payrolls report on Friday, which includes both public and private-sector employment. Economists polled by Reuters are looking for total U.S. employment to have grown by 220,000 jobs in August, a slight increase from the 215,000 jobs created in July. With more Americans continue to leave the labor force, unemployment rate is forecast to tick down to 5.2 percent from the 5.3 percent in July.
“Recent global financial market turmoil has not slowed the U.S. job market, at least not yet,” said Mark Zandi, chief economist of Moody’s Analytics. “Job growth remains strong and broad-based, except in the energy industry, which continues to shed jobs. Large companies also remain more cautious in their hiring than smaller ones.”
The typically higher-paying energy sector is facing regulatory headwinds from the Obama administration, preparing for billions of dollars in historic EPA rules despite the recent Supreme Court decision. The lower-paying service-providing employment rose by 173,000 jobs in August, up slightly from 170,000 in July, while the manufacturing sector added 7,000 jobs nationwide in August.
