Company Payrolls Jump In August

Company Payrolls Jump In August

Private sector companies in the U.S. added 190,000 new jobs in August, a figure that fell below analyst expectations but also represented an increase of 13,000 jobs compared to the previous month.

The increase, as reported by payroll company ADP in conjunction with Moody’s Analytics, was led by small businesses, which added 85,000 jobs. Medium-sized companies (between 50 and 499 employees) added 66,000 jobs, while large companies increased their payrolls by 40,000 jobs.

“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.”

Service companies added 173,000 jobs compared to 17,000 jobs from goods-producing businesses, though the latter figure represents a 10,000-person increase from July. Manufacturing companies added 7,000 employees, compared to 1,000 the previous month. Professional business services added 29,000 employees while trade, transportation and utility companies added 28,000, a decrease of 6,000 from July. 

"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.”

Economists had predicted an increase of more than 200,000 jobs in anticipation of the report. Tomorrow, the Bureau of Labor Statistics will release its closely-watched nonfarm employment report, which analysts predict will highlight the creation of 220,000 jobs with the unemployment rate decreasing to 5.2% from 5.3%.