ADP said that manufacturing employment rose by 7,000 in June, ending a three-month period of declines in hiring for the sector. This is welcome news, as it suggests that job growth has begun to recover from weaker economic conditions earlier in the year. Year-to-date, the manufacturing sector has added just 8,000 workers on net. This compares to 164,000 net new jobs generated in 2014, or an average of roughly 13,650 per month. Hopefully, we will return to a similar pace as we move into the second half of 2015.
In the larger economy, nonfarm private businesses added 237,000 workers in June, extending the 203,000 gain observed in May. Nonfarm payrolls have risen by 200,000 or more in 15 of the past 17 months, with the exceptions being in March and April of this year. As with the manufacturing data described above, this indicates a rebound from springtime softness in the overall labor market. (continue reading…)