August Job Growth in Private Sector Was Modest, Report Shows

From ThirdAge.com by Sheila Ring on August 31, 2011 11:51 AM

August job growth in the U.S. private sector was modest, according to a national employment report released Wednesday.

The report, published by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers, shows U.S. private-sector jobs rose by 91,000 this month.

Economists surveyed by Dow Jones Newswires had expected ADP would report an August gain of 100,000, the WSJ reports.

Following a revision by economists, the projected July data were lower, showing a rise of 109,000 versus 114,000 reported earlier.

The ADP survey accounts for private-sector jobs only, while the Bureau of Labor Statistics' nonfarm payroll data, to be released Friday, include government workers, the WSJ reports.

Economists surveyed by Dow Jones Newswires expect total nonfarm payrolls jumped by only 80,000 slots in August.

This month's tally is expected to remain unchanged due to workers on strike at Verizon Communications Inc. in mid-August and layoffs in the state and local government sector.

The August unemployment rate is expected to remain at 9.1 percent, reports the WSJ.

The latest ADP report showed large businesses with 500 employees or more added only 3,000 new employees.

Medium-size businesses added 30,000 workers in August, while small businesses that employ fewer than 50 workers hired 58,000 new workers.

Service-sector jobs increased by 80,000 this month, and factory jobs fell by 4,000, the sector's second monthly drop in employment, the WSJ reports.

ADP, of Roseland, N.J., says it processes payments of one in six U.S. workers, while St. Louis-based Macroeconomic Advisers is an economic-consulting firm.

Separately, U.S. factory orders, driven by strong car and airplane demand, climbed in July more than expected, reports the WSJ.

This is a promising sign as the manufacturing sector is struggling to grow amid a sluggish economy.