ADP Report Shows 195,000 Payrolls Added in August

Although fears of a recession have been in discussion for the better part of a year or more, that talk has heated up in recent weeks. From trade wars to inverted curves, there have been reasons to worry, leading The New York Federal Reserve to peg the chances that a recession hits in the next 12 months at 39% (according to CNBC). At the same time, as a new report from ADP shows, U.S. businesses continue to add jobs.

ADP’s latest release shows private payrolls growing by 195,000 in August. That not only bests the 140,000 that economists surveyed by Dow Jones had expected but also topped last month’s 142,000. In fact it was the best month for private payrolls since April when 255,000 jobs were added.

Unlike the jobs report that the Labor Department releases each month, ADP also looks at payrolls by business size. Leading the way in August were midsized businesses (50 to 499 employees), which added 77,000 payrolls. Meanwhile small business with fewer than 50 employees created 66,000 jobs with big businesses accounting for the other 52,000. Also interesting is that the service sector’s gains far exceeded goods and production 184,000 to just 11,000. The top vertical overall was education and health with 58,000 followed by leisure and hospitality (42,0oo) and trade, transportation, and utilities (39,000).

Asked by CNBC what ADP’s report signals for the economy at large, Moody’s chief economist Mark Zandi said, “Businesses are holding firm on their payrolls despite the slowing economy. Hiring has moderated, but layoffs remain low.” He went on to say, “As long as this continues recession will remain at bay.” Of course there’s still a question as to what the Labor Department’s official report will reveal. On that note, although Capital Economics U.S. economist Paul Ashworth told CNBC that job growth “remains in relatively good shape,” he anticipates the August job reports to show a figure closer to 110,000.

At this point the constent discussion of a potential recession may be old hat. But, with the longest expansion period in U.S. history still going, these talks are really just par for the course. That said it seems for every sign of danger that flashes, another reassuring signal follows — such is the case with ADP’s August payrolls report. So while analysts will continue to pour over data and indicators, for the time being, things appear to be ok.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt Extends Rent Day Promotion for Black Friday and Beyond

In October, the unique Bilt Mastercard unveiled its inaugural Rent Day promotion, which included the opportunity for cardholders to earn double rewards and nearly all of their purchases on the first of the month. That deal returned in November alongside the addition of a United Airlines status match offer and more. Now, just in time for Black Friday, Small Business Saturday, and Cyber Monday, Bilt is extended December's Rent Day...

Venmo App Adds Charitable Giving Interface

Although Thanksgiving and retail holidays such as Black Friday, Small Business Saturday, and Cyber Monday may be on the minds of many people, a popular peer-to-peer payment app is looking ahead to Giving Tuesday. This week, Venmo announced the rollout of a new interface that will make it easier for users to discover and donate to various charities. The feature is now live in the latest version of the Venmo...

American Express Introduces New Credit Card Approval Process

For some consumers, applying for a new credit card can be anxiety-inducing as there's a chance that they could not only be declined for the product but also have their credit impacted by the credit inquiry. To give these applicants better peace of mind, American Express is rolling out a new approval process. Amex has announced a new pilot program for its U.S. Personal Cards (meaning non-business cards) that will allow...