Job-huntersThe job market got a modicum of good news today with ADP (ADP) reporting that the private sector added 42,000 jobs in July. A Bloomberg survey had expected that number to be 35,000. Private employers also added a revised 19,000 jobs in June, ADP said, up from the previously released 13,000.

Although July's gain means the private sector has added jobs for six consecutive months, the pace of gains has been modest -- an average monthly increase of just 37,000 jobs. ADP also added that there's "no evidence of acceleration" in job growth.

Separately, private placement firm Challenger, Gray & Christmas said planned layoff announcements by U.S. employers increased 6% to 41,676 in July compared to June -- the third straight monthly increase, CNN.com reported. Job cuts have also risen about 9% over the past three months. However, that's still 57% below record levels of a year ago. So far in 2010, employers have announced 339,353 job cuts, down 64% compared to the same period for 2009.

Qualified Bright Spots

ADP's July report noted that the job increases by large, medium and small businesses were zero, and 21,000 and 21,000, respectively.

In addition to the better-than-expected top-line total, another qualified bright spot in the latest report was the construction sector, which lost only 17,000 jobs in July -- the smallest monthly decline since November 2007. Even so, the number of construction jobs lost since the January 2007 peak is now 2.24 million. Also encouraging: The financial services sector lost just 1,000 jobs -- that sector's smallest decline since June 2007.

Further, the services sector continued to rebound in July, adding 63,000 jobs, while goods-producing companies lost 21,000, and manufacturing shed 6,000 jobs -- the first job loss in the manufacturing sector in six months.

Mildly Encouraging


Investors should monitor monthly job reports because job creation is positively correlated with corporate revenue and earning gains. And, in general, as corporate earnings go, so goes the U.S. stock market.

July's private employment report was mildly encouraging, because although the job market isn't in an a clear uptrend, conditions in the private sector don't appear to be deteriorating, and what looks like subsiding job losses in the hard-hit construction and financial services sectors also represent pleasant developments.

The 42,000 total also was better than expected, which provides modest hope heading into the more-telling monthly job statistic, containing both private and public sector job data -- the U.S. Labor Department's July nonfarm payroll report, to be released Friday, Aug. 6 at 8:30 a.m. ET. A Bloomberg survey finds that report is expected to show a gain of 100,000 jobs in the private sector, after excluding the loss of about 170,000 temporary U.S. Census jobs.

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Karen

Doesn't matter wheather the job rate goes up or down. Obama and "his people" will find a way to try and make the American people believe they are up an it is all his doing. This guy can't be human, because humans all make mistakes. But according to him and every one that loves him he seems to have never done one thing wrong. Wow, how did this country get so lucky

August 05 2010 at 11:42 AM Report abuse +1 rate up rate down Reply
1 reply to Karen's comment
jre441

Karen, The serious govenmental leadership failures that led to the current recession occured before Obmama took office. Obama inherited a very unstable situation. We can't blame him for that. We can only judge his leadership in responding to this crisis.

James

August 05 2010 at 2:39 PM Report abuse -1 rate up rate down Reply
Mingo

If you think unemployment is bad now wait until the Cap and Trade bill is jammed down your throat . $2 more a gallon for heating oil and gasoline. Small businesses will be crushed by the new taxes. people will lose more jobs oh and your electricity will go up very high WELCOME TO CUBA . Don't be surprised if there is a vote before the next election not to have anymore elections

August 05 2010 at 11:11 AM Report abuse +2 rate up rate down Reply
Mingo

What fun to watch people think they are reading good news. There are less lay-offs because there are less people to lay -off There is still a real unemployment of over 25% and growing. The president just gave the teachers UNION 10 billion dollars why not give it to the private sector for jobs.We cn't keep this pace up with people not working. 95% poor 5% rich is where we are going

August 05 2010 at 11:03 AM Report abuse +2 rate up rate down Reply
irishgal5018

More lies and propaganda from odumbo's lie machine.

August 05 2010 at 10:41 AM Report abuse +2 rate up rate down Reply
jevans7188

Riddle me this: American companies have the second HIGHEST corp tax rate in the WORLD, We have state, local, federal, property, taxes in addition, Obama wants to raise, (or cause) all these to rise even more......not to mention a capital gains increase which will erode even more capital investment.....looming energy taxes, possibly a VAT tax, increased health care costs, increased govt agency regulation and oversight/compliance costs,......if YOU owned a company today, can you see any way at all to feel that your sales and overall profits would be heading higher??....BE HONEST....there is NO WAY to feel like Obama's policies are creating anything but an abyss for economic growth in the private sector, on top of that labor and compliance costs are far far lower in other countries like hong kong, indonesia, india etc......the ugly truth is these costs are why jobs are "shipped" overseas. If you want to see America roar back, then STRIP the federal govt of the power to regulate(return that to the states so each state can more closely work with industry as a partner not a dictatorship) ease back on taxes by about 50%, and American companies, with our natural resources, and inventiveness, would once again dominate the world in innovation and production of goods across the board. But with the socialistic attitudes of Obama and his democratic party policies, we are resigning our great country to a Europeanesque future that I wouldnt wish on anyone, least of all our kids!!

August 05 2010 at 9:58 AM Report abuse +5 rate up rate down Reply
RDBACC

As a small business owner in highway construction, Obama has hurt my business. If this health care does not get repealed, I can't afford the added expenses. There is 477 Bill of Stimuls that is just sitting and the word is that this Whitehouse MAY release the infastructure portion late October just in time for Elections. However, we needed to work through this season. Most states have a highway construction season April thru Nov. Even if the money is release in October for all those SHOVEL READY PROJECTS, work can't start till April 2011 in most states. There is another 250 Bill. set aside for road construction which is also just sitting and there is no word on WHAT they will do with that. The Highway Trust fund Bill for 2010 was never put into effect - this is funding for Highways, Airports, etc. Congress announced that since it is so late in the year and since they will NOT HAVE TIME DUE TO ELECTIONS - the HIghway Trust for 2010 will be thrown into 2011. But once again Obama has taken care of Unions and Federal EMployees - just yesterday passing through further funds to stop 142 teachers in DC from being laid off. The small portion of the Stimulus that States DID receive for SHOVEL READY PROJECTS - was mostly used by the States to pay off their Debts and never reached to private sector.
Regarding Jobs - CLinton put thru NAFTA and if you research it - you will find that he opened the doors with CHINA AFTER they made HEAVY CAMPAIGN contributions! The deregulation of Freddie and Fannie came under CLinton's Administration - Don't anyone remember Hillary's passionate speech where she said that "ALL PEOPLE HAVE THE RIGHT TO REALIZE THE AMERICAN DREAM AND OWN HOMES" she forgot they had to pay for them. That deregulation led to Low Income QUOTA'S - and what send the housing industry into overdrive was the LAWSUIT OBAMA FILED WHEN HE REPRESENTED ACORN - the suit he filed was a descrimnation suit against Freddie and Fanny for NOT granting ENOUGH LOW INCOME PEOPLE MORTGAGES! Out of that Lawsuit Freddie and Fannie WERE FORCED TO INCREASE the amount of low income mortgages and the scrutiny on credit checks got thrown out the window - every one was getting loans whether they could afford it or not and Freddie and Fannie MADE THEIR QUOTAS!
I have since LEFT the Democratic Party and became A PROUD INDEPENDENT! If they want my vote - first they got to prove that they are qualified, second they got to EARNED IT the right way - not the Chicago Politic way, and third that THEIR Allegiance is to AMERICANS, THIS COUNTRY AND THE LAWS OF OUR LAND! Enough is Enough!

August 05 2010 at 9:56 AM Report abuse +3 rate up rate down Reply
bsmithanza

Hunker down people..things arent going to change anytime soon. You can blame both parties for this mess. Free trade and illegal immigration are the root causes of this whole mess. Get a policy of FAIR trade, to keep jobs in this country and then stop the importation of poverty and cheap labor thats constantly undermining the wage base, and you will see a quick turn-around. Everyone touts the taxes paid by immigrants, but nobody sees that they take 4 times whatever they pay in taxes in public assistance. Our local and state governments arent broke for no reason. With these 2 major problems, add the onslaught of overbearing government regulation and its easy to see we are in the perfect economic storm. If I could move my business overseas I would. The cost to employ someone is 30 to 50% over whatever you pay them and then the govt takes another 30% of the employees wages. Any business cannot be marginally profitable and survive...they have to be very profitable!...its all the costs! Look into workmans comp costs for a roofer!
This Nov we have the opportunity to vote all the chameleons out....whatever party...vote for someone who will actually address the real issues head on and not pander to the special interests. We dont need immigration reform...we need more immigrants like we need hemroids...deport ...deport ...deport

August 05 2010 at 9:48 AM Report abuse +4 rate up rate down Reply
whendoesitmatter

If memory serves me right didn't President Obama claim that unemployment would not go above 8 percent if he passed his trillion dollar stimulus bill?The Democrats have had full control of Washington since Obama became President,you can do a song and dance for me defending the Democrats all you want,you can blame Bush or Clinton and some of you would go as far back as Abraham Lincoln to defend this President and thats weak.If a party that has full control wrecklessly spends money and makes promises that they can not keep,then there is no defence for these people no matter what you claim or who you blame.Don't get me wrong,Republicans did the same thing and they paid the price in 2006 when we threw most of them out.It just amazes me how some people are total loyalist to a party who could care less about you.

August 05 2010 at 9:45 AM Report abuse +4 rate up rate down Reply
garyrjas

Sheldon, Clinton signed NAFTA but it was originally proposed by Bush I as part of the new world order, remember? I know people quickly forget facts when they don't suit them. And Obama wanted to give small and medium businesses a tax cut but the Republicans fillabustered the bill, I guess for political points. Sure looks like the Republicans are just trying to do everything they can to score political points at the expense of the US. Sad they couldn't try to work together for the common good of all. We need some tax hikes on the rich, and a small decrease in capital gains to spur investment, similar to what Clinton did which brought us to 2.9% unemployment and paying off the debt (until George II got in and decided his rich buddies needed a huge tax cut, resulting in over 8 trillion in debt). These problems are not that difficult to solve, but as long as we have political parties on both sides just trying to save their own butts, we'll never get anywhere.

August 05 2010 at 9:44 AM Report abuse +1 rate up rate down Reply
2 replies to garyrjas's comment
Sheldon

So, Bush 41 made Clinton sign NAFTA. Therefore, you do not hold Clinton responsible for NAFTA, which, BTW, was the right thing do do. However you give Clinton credit for low unemployment. Do you recall Y2K? It stimulated hundreds of billions of dollars on technology spending that drove the world economy of the late 1990's. What did Clinton do to encourage that other to stay out of the way and take credit? Then, when the bubble burst in March 2000, Democrats blame Bush 43 even though the demise started eight months before his inauguration.

August 05 2010 at 10:11 AM Report abuse +2 rate up rate down Reply
Sheldon

Gary, allow me to agree with you on this much. Bush 43 wanted to create an "ownership society". However the Democrats supported it because they claimed that home ownership is the right of all Americans. Therefore lending was made with no standards, or worse, lenders feared charges of discrimination if they did not make loans to disadvantaged people. There is blame to go around. However, Obama's clarion call to class warfare is not the answer. Business should not be afraid to hire because of hostility from a President and a Congress that are bought and paid for by labor unions.

August 05 2010 at 10:19 AM Report abuse +1 rate up rate down Reply
garyrjas

Notice that big business is not hiring but small and middle are. Yet big business made huge profits on the backs of those still working, but are expected to work twice as hard or join the unemployed. The fact is, all big business wanted to do during this recession is clean house and hire Chinese and Indian workers. They are in fact traitors to this country. They could easily hire millions sitting on all of that cash, instead, they are going to pay their rich investors big dividends. I'd like them all to leave the US, lets see what happens if they move to China, like Boeing wants to do, and the government decides without notice that their company has been nationalized and is now owned by the country. We are our own worst enemies here.

August 05 2010 at 9:38 AM Report abuse +2 rate up rate down Reply