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SEARCHPrivate sector employment increased in August from July by 204,000 jobs, according to the August National Employment Report from ADP released on Thursday. This marks the fifth straight month of employment gains above the 200,000 mark.
Private sector employment increased in August from July by 204,000 jobs, according to the August National Employment Report from ADP released on Thursday.
This marks the fifth straight month of employment gains above the 200,000 mark. The July total of jobs added was revised downward from 218,000 to 212,000.
"Steady as she goes in the job market. Businesses continue to hire at a solid pace,” said Mark Zandi, chief economist of Moody’s Analytics, which provides analysis for ADP. “Job gains are broad based across industries and company sizes. At the current pace of job growth the economy will return to full employment by the end of 2016.”
Goods-producing employment rose by 41,000 jobs in August, up from 23,000 jobs gained in July. Service-providing employment rose by 164,000 jobs in August, down from 190,000 in July.
The report is derived from payroll processor ADP and its actual payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S.
Growth in the service sector
Meantime, a separate report shows economic activity in the nation’s non-manufacturing sector grew in August for the 55th consecutive month, according to the nation's purchasing and supply executives.
The latest reading of the Non-Manufacturing Index from the Institute of Supply Management shows it registered 59.6% in August, 0.9 percentage point higher than the July reading of 58.7 %.
This is the highest for the composite index since its inception in January 2008.
The Non-Manufacturing Business Activity Index increased to 65%, which is 2.6 percentage points higher than the July reading of 62.4 %, reflecting growth for the 61st consecutive month. It is the highest reading since December of 2004 when the index also registered 65%.
The New Orders Index registered 63.8%, 1.1 percentage points lower than the reading of 64.9% registered in July.
According to the NMI, 15 of the 17 non-manufacturing industries reported growth in August.
Respondents' comments to the survey varied by business and industry, but the majority reflect continued optimism in regard to business conditions, according to NAPM. Some respondents indicate that there may be some tapering off in the recent strong rate of growth in the non-manufacturing sector.
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