ADP Data Reflects Weak Manufacturing Job Growth

By August 1, 2012Economy

Automated Data Processing (ADP) said that manufacturing employment rose by 6,000 net employees in July. Over the past four months, there have been just 1,000 net new jobs added in the sector, a sharp contrast to the 81,000 workers added between December and March.

These figures have underestimated the official jobs figures from the Bureau of Labor Statistics, which observed 152,000 net new manufacturing employees added between December and March. Since November, the sector has contributed 182,000 net new jobs in total. With that said, ADP definitely has the direction of the data pegged, with weaker job growth from April to June. BLS will release new jobs numbers on Friday, which are expected to show minimal growth in employment among manufacturers.

For the economy as a whole, ADP reported that there were 163,000 new nonfarm, private payrolls in July. This is somewhat slower than the 172,000 additional workers seen in June. The bulk of the job growth stemmed from the service sector, which contributed 148,000 of the net gains. Goods-producing firms, which include manufacturers, added 15,000.

Larger goods-producing firms (e.g. those with 500 or more employees) accounted for 7,000 of the 15,000 net new jobs. This deviates from past months, where small and/or medium-sized establishments generated the most net new employment. Still, looking at all nonfarm employment, small and medium-sized payrolls accounted for 85.9 percent of net job creation. 

Chad Moutray is chief economist, National Association of Manufacturers.


Chad Moutray

Chad Moutray

Chad Moutray is chief economist for the National Association of Manufacturers (NAM) and the Director of the Center for Manufacturing Research for The Manufacturing Institute, where he serves as the NAM’s economic forecaster and spokesperson on economic issues. He frequently comments on current economic conditions for manufacturers through professional presentations and media interviews. He has appeared on Bloomberg, CNBC, C-SPAN, Fox Business and Fox News, among other news outlets.
Chad Moutray

Join the discussion One Comment

  • Well corporate taxes need to come down, employees are already too expensive but when you add the taxes on top of that it’s just worth going overseas.

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