US private sector employment rises more than expected in July - ADP

(Sharecast News) - Private sector employment in the US rose more than expected in July, according to figures released on Wednesday by ADP. Employment rose by 140,000 from June, versus expectations for a 78,000 increase. Meanwhile, the June figure was revised to show that 23,000 jobs were shed, rather than 33,000.

Small businesses with fewer than 50 employees added 12,000 jobs, while medium businesses with between 50 and 499 employees added 46,000 jobs.

Large businesses with more than 500 employees also created an additional 46,000 jobs.

The service sector added 74,000 jobs, while the goods-producing sector saw a 31,000 increase.

The data also showed that year-over-year pay growth in July was 4.4% for job-stayers and 7% for job-changers. Gains have held steady for the past four months.

Nela Richardson, chief economist at ADP, said: "Our hiring and pay data are broadly indicative of a healthy economy.

"Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient."