Employment is set to increase in July, though slightly lower than last month’s increase, according to the ADP and Moody's Analytics National Employment Report.

ADP predicts employment will increase by 178,000 jobs in July, up from last month’s predicted 158,000 jobs, but down from the actual employment report’s 222,000 jobs.

The chart below shows July’s prediction compared to the predictions from previous months, however ADP doesn’t always have the best record.

Click to Enlarge

jobs

(Source: ADP, Moody’s Analytics)

But while the report’s predictions each month may be spotty, the chart below shows it generally follows the same trend as nonfarm private employment.

Click to Enlarge

jobs

(Source: ADP, Moody’s Analytics)

“Job gains continued to be strong in the month of July,” said Ahu Yildirmaz, ADP Research Institute vice president and co-head. “However, as the labor market tightens employers may find it more difficult to recruit qualified workers.”

The goods-producing sector is set to increase as a decrease in manufacturing jobs partially offsets the increase other areas, including construction:

Natural resources and mining: Increase 3,000

Construction: Increase 6,000

Manufacturing: Decrease 4,000

The service-providing sector is set to increase by 174,000 jobs, with changes in these areas:

Trade, transportation and utilities: Increase 24,000

Information: Increase 8,000

Financial activities: Increase 13,000

Professional and business: Increase 65,000

Education and health: Increase 43,000

Leisure and hospitality: Increase 15,000

Other services: Increase 5,000

“The American job machine continues to operate in high gear,” Moody’s Analytics Chief Economist Mark Zandi said. “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.”

Most Popular Articles

Here are the mortgage lenders that borrowers like the most

J.D. Power’s 2019 U.S. Primary Mortgage Origination Satisfaction Study, released Thursday morning, showed that there are some lenders that customers seem to love working with more than others. Here are the ones that borrowers are partial to.

Nov 14, 2019 By

Latest Articles

Congressional vote on “de facto QM Patch” postponed

The House Financial Services Committee postponed a vote on H.R. 2445 on Wednesday, a bill that would fix the so-called QM Patch that’s set to expire in early 2021.

Nov 15, 2019 By