Private Sector Employment Rises More Than Expected

Roseland, NJ, Aug. 4, 2010--Private-sector employment rose 42,000 in July for the sixth consecutive monthly gain, according to the employment report from payrolls processing firm ADP.

Over six months, increases have averaged 37,000, "with no evidence of acceleration," according Joel Prakken, chairman of Macroeconomic Advisers, which produces the report from anonymous payroll data supplied by ADP.

The report "shows continued weakness in the jobs market, which is in part caused by the uncertainty in the economy and general business climate," said Gary Butler, ADP's chief executive, in a press release.

"American businesses are on the cusp of recovery, but more effective incentives are needed to encourage business investment resulting in the creation of more jobs."

Economists had been expecting the ADP report to show a 23,000 increase in July.

ADP revised upward its estimate for June nonfarm private employment to a 19,000-job gain, from a prior estimate of a 13,000 gain. The ADP report doesn't include government workers.