First Look at July: ADP Says 178K New Nonfarm Private Jobs
The economic mover and shaker this week is Friday's employment report from the Bureau of Labor Statistics. This monthly report contains a wealth of data for economists, the most publicized being the month-over-month change in Total Nonfarm Employment (the PAYEMS series in the FRED repository). Today we have the ADP July estimate of 178K new nonfarm private employment jobs, a decrease over June's 191K, which was an upward revision of 33K.
The 178K estimate came in below the Investing.com consensus of 185K for the ADP number.
The Investing.com forecast for the forthcoming BLS report is for 183K nonfarm new jobs (the actual PAYEMS number) and the unemployment rate to tick down to 4.3%.
Here is an excerpt from today's ADP report:
“Job gains continued to be strong in the month of July,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “However, as the labor market tightens employers may find it more difficult to recruit qualified workers.”
Mark Zandi, chief economist of Moody’s Analytics, said, “The American job machine continues to operate in high gear. Job gains are broad-based across industries and company sizes, with only manufacturers reducing their payrolls. At this pace of job growth, unemployment will continue to quickly decline.”
Here is a visualization of the two series over the previous twelve months.
The key difference between the two series is that the BLS series is for Nonfarm Payrolls while ADP tracks private employment.
Here's our list of monthly employment updates: