Private-sector job growth in the U.S. continues to be strong across the board — except within the energy sector, according to a report released Wednesday by ADP and Moody’s Analytics.
Private payrolls rose by 190,000 jobs last month, falling short of the 200,000 increase predicted by economists surveyed by The Wall Street Journal, but broadly in line with recent trends.
“Recent global financial market turmoil has not slowed the U.S. job market, at least not yet,” Moody’s chief economist Mark Zandi said in a news release. “Job growth remains strong and broad-based, except in the energy industry, which continues to shed jobs.”
“Large companies also remain more cautious in their hiring than smaller ones,” he added.
Job growth is a concern of the U.S. Federal Reserve as it considers whether to raise interest rates this year. Fed policymakers are meeting Sept. 16 and 17 — where an interest-rate increase is on the table, the WSJ said.
ADP and Moody’s said service jobs fueled the overall gain in August, rising by 173,000 jobs, up slightly from 170,000 in July. Goods-producing employment rose by 17,000 jobs in August, more than double the gain in July.
Elsewhere, the construction industry added 17,000 jobs in August, up from 15,000 last month, manufacturing added 7,000 jobs in August, after gaining only 1,000 in July, and the 13,000 new jobs added in financial activities was a gain from last month’s 10,000.
But energy job cuts dragged down the trade/transportation/utilities category, whose growth slowed to 28,000, down from 34,000 the previous month.
Payrolls for businesses with 49 or fewer employees increased by 85,000 jobs in August, an increase of over one-third from July. Employment among companies with 50 to 499 employees increased by 66,000 jobs, 5,000 more than the previous month. Employment gains at large companies — those with 500 or more employees — fell from July, adding 40,000 jobs in August, down from 53,000.
Economists expect the Labor Department on Friday will report nonfarm payrolls grew 220,000 in August, up from 215,000 in July, and predict that the unemployment rate fell to 5.2% from 5.3%.