Report Shows a Cooling in the Job Market as Some Industries Are Hit Hard
Nonfarm job growth slowed in June, according to the latest ADP National Employment Report.
All the jobs gained last month were created by service-provider operations. While the service industry fared well last month, many other industries saw large cuts in their employment rates.
About 2,000 construction jobs were lost and 4,000 natural resource and mining positions were similarly shed. This marks the second time in three months that goods producers did not generate any net additions to employment, according to ADP data.
What’s especially interesting is that those two industries—natural resource and mining, and construction—are precisely the types of jobs that President Donald Trump campaigned on, saying that he would bring them back to the U.S. and get the country working again. So far, his efforts have reaped little benefits for workers in those fields, though he has maintained and continued to express a preference for these jobs and a desire to restore them to the U.S.
While small businesses did manage to show job growth, it was the slowest rate of gains since October.
“Businesses are running out of people to hire. The number of open job positions now is over 6 million,” Mark Zandi, chief economist at Moody’s Analytics, said during a conference call Thursday morning. “This is going to be the biggest problem businesses face for the foreseeable future.”
“Labor force participation is going to remain under pressure, and unless there’s a significant pickup in immigration, which seems very unlikely in the current political environment, that means labor growth is going to slow, at some points, it could even come to a standstill.”
Last month’s report was also revised, stripping it of thousands of previously reported job gains. About 23,000 jobs were shed from May’s report alone. There are also concerns that more job growth slowing will occur in the future.
Retail continues to suffer as the industry is losing jobs at an alarming rate, with retail closures and layoffs approaching levels not seen since the early days of the financial crisis in 2009.
“ADP: U.S. Job Growth Slows to 158K,” U.S. News and World Report, July 6, 2017.