UPDATE 1-U.S. companies add 200,000 jobs in July -ADP

Wed Jul 31, 2013 8:44am EDT

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NEW YORK, July 31 (Reuters) - U.S. companies added 200,000 jobs in July, topping economists' expectations, in an encouraging sign for the labor market recovery, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 180,000 jobs. June's private payrolls were revised up to an increase of 198,000 from the previously reported 188,000.

The ADP figures come ahead of the government's more comprehensive national labor market report on Friday, which includes both public and private-sector employment.

Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome. The report is jointly developed with Moody's Analytics.

Analysts were also trying to gauge what the figures might mean for the Federal Reserve's potential timeline for winding down its stimulus program. The U.S. central bank has laid out plans to start slowing its $85 billion in monthly bond purchases later this year if the economy progresses as expected.

"ADP clearly confirms the U.S. job engine is operating on all cylinders, slanting the odds toward, or at least putting the pressure on the Fed to taper sooner rather than later," said Boris Schlossberg, managing director at BK Asset Management in New York.

The Fed will release a statement Wednesday afternoon at the conclusion of its two-day policy meeting.

Friday's payrolls report is expected to show a net 184,000 jobs were added in July, including 189,000 private jobs.

The euro fell against the dollar immediately following the ADP report, while Treasury prices widened losses. U.S. stock index futures, though, were little changed.

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Comments (2)
CFPCowboy wrote:
The problem is not in the addition of 200,000 jobs, but it is in the description of those jobs, many of which were part time. Concerning the White House explanation of the job losses coming from military and other segments, as part of the sequester, many of the military jobs are contractor positions, not subject to unemployment, and hence, would not be counted in first time filings. Add to that the simple fact that yesterday, we finally obtained a cost for the delay of the employer mandate, showing the government will lose 12 billion in revenue.

Jul 31, 2013 9:51am EDT  --  Report as abuse
NyteFyre22 wrote:
I work for a major company and my wife does too and they are both in the process of moving the majority of their workforce to part time from full time. probably in preparation for Obamacare.

Jul 31, 2013 12:08pm EDT  --  Report as abuse
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