U.S. private employers hired about 200,000 people in July, as the construction and business/services sectors paced a second consecutive month of strong job creation, Automatic Data Processing said on Wednesday.
Analysts polled by Thomson Reuters expected 180,000 jobs to be created.
"Job growth remains remarkably stable," said Mark Zandi, chief economist of Moody's Analytics, which helps ADP conduct the survey. "Businesses are adding to payrolls in most industries and across all company sizes. The job market has admirably weathered the fiscal headwinds, tax increases and government spending cuts. This bodes well for the next year when those headwinds are set to fade."
Indeed, small businesses created 82,000 jobs, while medium-sized businesses hired 60,000 people and large businesses employed 57,000 in July. Service industries added 177,000 jobs, the largest such gain since November. Manufacturing jobs declined by about 5,000.
The relatively strong ADP report is expected to encourage the U.S. central bank to begin reducing its $85 billion per month of money printing, Paul Dales, senior U.S. economist for Capital Economics, said.
Mike Obel assigns, edits and writes stories about business, markets, finance and economics. Before coming to International Business Times, he worked on the Finance Desk of...