ADP points to returning stability in labor market

Today ADP employment numbers were released from US for the month of July.

ADP number shows US economy and its labor markets are resilient and the recent momentum loss is stabilizing.

There are two things to note even in the headline that,

• Job growth is stabilizing and the weakness seen in April and May.
   
• June payroll marginally revised to 176,000 (up from 172,000). May was revised higher to 181,000 (+32,000).

Key highlights –

• Non-farm private sector employment grew at 179,000 in July, median expectation was for 170,000.
• Small business sector hiring at 61,000, compared to 95,000 last month.
• Employment in franchise increased to 21,200 compared to last month’s 40,700.
• Mid-sized companies added 68,000 jobs compared to last month’s 52,000 jobs.
• Large sector added just 50,000 compared to last month’s 25,000 jobs.
• Manufacturing sector payroll rose by 4,000 jobs compared to 21,000 jobs losses last month.
• 6,000 jobs were lost in goods producing sector, compared to last month’s 36,000 jobs losses.
• Construction sector saw 6,000 job losses, compared to last month’s 5,000 job losses.
• Services sector employment remains robust as payroll added 185,000 people in July. June gains were 208,000.

Dollar index is currently trading at 95.22, up 0.08% for the day so far.