Human resources technology firm Automatic Data Processing said U.S. private-sector companies added 219,000 new employees to their payrolls in July, topping analyst estimates.
ADP said small businesses created 52,000 jobs, medium businesses added 119,000, and large businesses created 48,000 jobs.
Meanwhile, the number of jobs estimated to have been generated in June was raised to 181,000 from 177,000. Economists surveyed by Econoday had forecast an increase of 173,000 non-farm jobs for July.
The numbers come as economists debate the true strength of the U.S. economy and continue to work out the impact of tax cuts and trade barriers.
“The job market is booming, impacted by the deficit-financed tax cuts and increases in government spending,” said Mark Zandi, chief economist at Moody’s Analytics, which publishes the National Employment Report with ADP. “Tariffs have yet to materially impact jobs, but multinational companies shed jobs last month, signaling the threat.”
Added Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, “The labor market is on a roll with no signs of a slowdown in sight. Nearly every industry posted strong gains and small business hiring picked up.”
Goods-producing businesses created 42,000 jobs in July, the ADP report said. Service providers added 177,000 jobs. And U.S. franchise employment increased by 15,100 jobs.
ADP puts out its numbers — derived from its 411,000 U.S. clients, representing 24 million workers — ahead of official numbers from the Bureau of Labor Statistics.
“The ADP survey has never been a great guide to the actual payrolls figures, but there is plenty of other evidence suggesting that jobs growth has remained strong,” said Andrew Hunter of Capital Economics, as reported by MarketWatch.
The BLS numbers are expected to show an increase of 193,000 jobs for July and a decrease in the unemployment rate from 4.0% to 3.9%.
The BLS website crashed earlier this week but is back up.