ADP, the automated payroll firm, released its National Employment Report, in advance of Friday’s Bureau of Labor Statistics monthly Employment Situation Summary, and the news is not good. The ADP report projects a monthly increase in private sector employment for June of only 13,000 jobs. Though it would mark the fifth consecutive month of job gains, the increase has only averaged 34,000 per month.
The ADP report indicates that manufacturing jobs increased for the fifth consecutive month, by 16,000, while employment in the service sector rose by 30,000. By contrast, jobs in the good producing sector declined by 17,000 last month, according to the report. Medium-size businesses, with between 50 and 499 workers, drove most of the growth, adding 11,000 jobs. Large businesses, with 500 or more workers, added just 3,000 jobs and small businesses, with fewer than 50 workers, decreased by 1,000 jobs in June.
The ADP National Employment Report comes as millions of Americans remain unemployed and Republicans in Congress scuttle efforts by the Obama administration to extend unemployment benefits. As the economy continues to sputter, the fallout for the long-term unemployed is manifest in home foreclosures, growing health care issues, and increased personal debt. Despite the enactment of the American Recovery and Reinvestment Act (ARRA), better known as the “Recovery Act,” job generation has lagged and among Black Americans, the joblessness crisis is now at a depression-like level. Compounding the issue is the persistence of joblessness among young adults, age 16 to 24, and Black men, who consistently lag in employment.
The data for the monthly report by ADP is drawn from a subset of the company’s half a million business clients in the United States in all private industrial sectors.