Jobs reports differ greatly on job market
Yesterday, The ADP National Employment Report showed an increase in private-sector employment of 201,000 from July to August. July’s gain was also revised up from 163,000 to 173,000.
That blew past most economists’ estimates for the month. According to a Bloomberg survey of 41 economists, the consensus for the ADP report was a gain of 140,000 jobs.
This morning, though, the Department of Labor came out with its numbers, painting a starkly different picture: a gain of only 96,000 jobs, well short of the consensus estimate of 130,000. (DOL numbers include both private and public sector employees.) That’s after 141,000 jobs were added in July. The unemployment rate was basically flat at 8.1 percent.
According to the ADP report, the largest number of jobs was created in the service sector, with employment expanding by 185,000 in August, up from 156,000 in July. Employment in the private, goods-producing sector added 16,000 jobs in August. Manufacturing employment rose 3,000, following an increase of 6,000 in July.
Small businesses (those with up to 49 employees) created the most jobs with 99,000. Employment at medium-sized business (50 to 499 workers) rose 86,000 in August. Companies with 500 or more workers added 16,000 jobs.
The government reported the biggest job gains in food service (28,000), professional and technical services (27,000) and healthcare (17,000). The biggest losses were posted in manufacturing (-15,000), especially in the auto industry, which shed 8,000 jobs in August.
The ADP National Employment Report website is available at http://ADPemploymentreport.com/methodology.aspx. The full government report can be accessed at http://www.bls.gov/news.release/empsit.toc.htm.