American Economy Added 179,000 Private Sector Jobs in July

American Economy Added 179,000 Private Sector Jobs in July

By: Daniel Steingold | August 03, 2016

According to payroll processor ADP, the American economy added a net 179,000 jobs in the private sector in July.

Most of these newly-added positions— 185,000— were by service companies, including firms in the retail and shipping sectors.

Manufacturing only added 4,000 jobs during the month, while jobs were lost in the construction industry.

Also, the financial services industry was said to have added 11,000 jobs, while professional and business services— which includes engineers and architects— added 59,000 positions.

The steady increase in jobs for the month of July is encouraging because economic growth has been lagging for the past few months. Additional jobs usually translates into more spending, which helps facilitate a thriving economy.

The greatest job gains were found in either high-paying and low-paying industries, which goes along with the narrative that the middle class is being squeezed economically.

While coming in significantly lower than June’s figure of 287,000 jobs added, July’s results hint that the economy has begun to regain its footing.

It is also important to note that as unemployment falls, there is less of a need for substantial gains in hiring.

Analysts say that with current economic conditions, the American economy only needs to add 85,000 positions a month to absorb population growth, while keeping the unemployment rate steady.

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