National payroll support provider ADP is reporting that the private sector added 204,000 nonfarm jobs from July to August. While this boost in employment number is lower than in previous months when 212,000 jobs were added in July and 297,000 in June, the trend is promising, according to Carlos Rodriguez, president and CEO of ADP.
“August marks the fifth straight month of employment gains above 200,000, continuing an encouraging trend for the U.S. labor market,” he said in a release.
The largest growth in employment was seen by small businesses which increased employment by 78,000 for the month, followed by medium sized businesses which added 75,000 for the same period.
The construction industry added 23,000 jobs, slightly above last month’s gain. Meanwhile, manufacturing added 23,000 jobs in August, the highest total in that sector since December 2012. Trade, transportation and utilities accounted for 28,000 new jobs, but the sector was down from the 43,000 positions added the last month.
The ADP National Employment Report indicates that professional and business services contributed 51,000 jobs in August, the most of any industry, but were still down from 60,000 in July. Financial services added just 5,000 jobs for the month, nearly half the positions the industry created a month before.
The vast majority of employment grew in the service-providing sector at 164,000 while jobs creating goods increased by 41,000 in August.
“Steady as she goes in the job market, “said Mark Zandi, chief economist at Moody’s Analytics. “Businesses continue to hire at a solid pace. Job gains are broad based across industries and company sizes.”
Zandi predicts that at the current pace of job growth, the economy will return to full employment by the end of 2016.