ADP: Private Sector Created 200,000 July Jobs

20,000 More Than Expected

ADP ReportSpurred by growth in professional and business services, the private sector created 200,000 jobs in July, according to a new report released by payroll firm ADP. The closely-watched release comes after economists expected ADP to report only 180,000 additional jobs last month.

Small businesses led the way in hiring, ADP said, adding 82,000 jobs in July. Mid-size businesses and large companies generated 60,000 and 57,000 positions respectively. Professional and business services produced the most job gains, adding 49,000, followed by the trade, transportation and utilities sector, which contributed 45,000 positions. The construction industry added 22,000 jobs.

"The job market has admirably weathered the fiscal headwinds, tax increases and government spending cuts," said Mark Zandi, chief economist for Moody's Analytics, which collaborates with ADP on its jobs report. "This bodes well for the next year when those headwinds are set to fade."

Some analysts say job growth is outpacing the sluggish economy because employers are now making up for slow hiring early in the recovery. Analysts say the job market has proven resilient despite an economy that has weakened recently amid federal spending cuts and a January payroll tax increase for working Americans. According to the Labor Department, monthly job growth –including the private sector and federal, state and local governments – has averaged about 200,000 positions so far this year.

The Bureau of Labor Statistics will release its official jobs report on Friday.