In spite of economists’ expectations for August, the private sector in the United States only added a number of 190,000 jobs. These figures were issued by the ADP Research Institute in Roseland, New Jersey on Wednesday, September 2.
According to the predictions of almost 50 top economists who were surveyed by Bloomberg, a private financial software, data and media company based in New York, about 200,000 jobs were expected last month in the private sector. Estimates ranged from 160,000 to 230,000 job gains, according to the same company.
July was not very successful in meeting economists’ predictions either. Only 177,000 workers were employed by U.S. companies, compared to the estimated 185,000.
“Recent global financial market turmoil has not slowed the U.S. job market, at least not yet. Job growth remains strong and broad- based, except in the energy industry,” said Mark Zandi, who is the chief economist at Moody’s Analytics Inc. He s also the one who releases the figures with ADP.
Another report issued on August 28 by the Labor Department showed that the total number of people employed last month went up to 218,000. This number included government agencies. At the same time, unemployment rate went down to 5.2 percent, which is not far from July’s 5.3 percent, but it is still an improvement.
As expected, construction and manufacturing companies increased the number of workers significantly, adding a total number of 17,000 jobs. This is even higher than it was over the previous months. A simple explanation for that is that house pricing has gone up thanks to the higher employment rate, which increased the demand for new constructions. Service providers counted about 173,000 employees last month.
Large companies with 500 or more employees only added about 40,000 jobs, compared to medium -sized companies (50 to 499 employees) which boosted payrolls with 66,000 new people and smaller businesses, with less than 50 employees, which hired about 85,000 people.
Thanks to the low rate of unemployment that has remained on decrease mode over the past months, there is hope interest rates will increase starting with September, according to a spokesman of the Federal Reserve.
Consumer satisfaction has also gone up, even if people are still reluctant to spend large sums of money.
Image Source: jobstoday