ADP Reports 114,000 Jobs Added in July, But There's Still a 6 Million "Private Job Deficit"

From  today's ADP National Employment Report:

"Employment in the U.S. nonfarm private business sector rose 114,000 from June to July on a seasonally adjusted basis. The advance in employment from May to June was revised down modestly to 145,000, from the initially reported 157,000.

Employment in the service-providing sector rose by 121,000 in July, marking 19 consecutive months of employment gains. Employment in the goods-producing sector fell by 7,000 in July, the second decline in three months. Manufacturing employment decreased 1,000 in July, which has seen growth in seven of the past nine months. Employment on small payrolls (<50 workers) rose 58,000 in July, while employment on medium payrolls (50 to 499 workers) rose 47,000. Employment on large payrolls (500 or more workers) rose a smaller 9,000.

Today’s ADP report suggests that employment continued to advance at a moderate pace in July. This gain of employment growth is moderately above the consensus forecast for Friday’s jobs number from the BLS, and this pace of job creation usually implies a steady unemployment rate. However, employment growth is decelerating. Since February, the three-month percent change has declined every month, from 0.60% then to 0.27% in July.

The slowdown in employment makes more sense in light of last week’s revised GDP numbers showing the economy grew slower late last year and this year than initially reported.

MP: The chart above of monthly changes in private payrolls shows that the U.S. economy has added almost 2 million jobs since February 2010, at an average pace of about 106,000 new jobs per month.  But there were almost 8 million private jobs lost in 2008 and 2009, so it would take more than four more years of job creation at the current pace just to replace the remaining 6 million "private job deficit."