ADP Employment Report Far Better Than Expected

Roseland, NJ, July 30, 2008--U.S. private sector jobs increased by 9,000 in July, according to the ADP national employment report.

The report by Automatic Data Processing and consultancy Macroeconomic Advisers, was better than the expected decline of 65,000. June’s report was revised to a decline of 77,000 from a decline of 79,000.

“Though July’s figures showed a slight employment gain, the ADP Report’s recent three-month average of negative 14,000 suggests that the weakened employment situation continues,” ADP said in a press release.

According to the report, gains came in the services sector, where jobs rose by 74,000 in July. Jobs in the goods-producing sector declined 65,000 and by 49,000 in the manufacturing sector.

ADP’s reading indicates that the labor market outlook remains weak even as overall economic growth has held up despite severe headwinds from the bursting of the housing market bubble and sharp rises in food and energy prices.