The U.S. economy added 179,000 private sector jobs in July, according to a new report today from private payroll processor ADP, rising above a consensus estimate of 165,000 from briefing.com.
Today’s ADP report is a precursor to Friday’s closely watched non-farm payroll report from the Bureau of Labor Statistics.
“Job growth remains strong, but is moderating as the economy approaches full employment. Businesses are having a more difficult time filling open job positions, which are near record highs” said Mark Zandi, chief economist from Moody’s Analytics.
“The nation’s biggest economic problem will soon be the lack of available workers” Zandi added.
Another economist, Ahu Yildirmza, vice president and head of ADP Research Institute, noted that the 179,000 private sector jobs created in July is still below the 12 month average and signals a labor market that is tightening.
“This month’s employment number falls short of the 12-month average primarily because of slowing in small business hiring” Yildirmza said.
“As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses” he explained.
According to a consensus estimate from briefing.com, the U.S. economy is expected to have added 185,000 non-farm payroll jobs in July.