PhotoAlthough July was a better month for employment than June, the pace of new job creation continues at a less than robust pace.

According to the July ADP National Employment Report, private sector employment increased by 179,000 jobs from June to July -- 3,000 more jobs than were created in June.

The report, produced by the ADP Research Institute in collaboration with Moody's Analytics, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

"This month's employment number falls short of the 12-month average primarily because of slowing in small business hiring," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses."

Strength in services

Service-providing employment added 185,000 jobs last month, with professional/business services contributing 59,000. Trade/transportation/utilities increased by 27,000 jobs and financial activities added 11,000.

Goods-producing employment lost 6,000 jobs in July, following June losses of 28,000, with the construction industry down 6,000. Manufacturing rebounded, gaining 4,000 jobs after losing 15,000 a month earlier.

Payrolls for businesses with 49 or fewer employees increased by 61,000 jobs in July, while employment at companies with 50-499 employees rose by 68,000. Large companies -- those with 500 or more employees -- hired 50,000 new workers; firms with 500-999 employees added 16,000, and companies with more than 1,000 employees put another 33,000 people on the payroll.

"This month's employment number falls short of the 12-month average primarily because of slowing in small business hiring," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses."


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