Manufacturing Loses Most Jobs Since Election As ADP Employment Growth Weakens

Tyler Durden's picture

After April and June's disappointment, ADP reports the US economy added 178k jobs in July (less than the 190k expectation and below June's upwardly revised 191k). This is somewhat in line with the 180k expectation for NFP on Friday.

Two months in a row, ADP has weakened as ISM surveys suggested employment is rolling over.

Once again Service-providing jobs dominated (+174k vs +4k for goods) with manufacturing losing 4,000 jobs in July.

“Job gains continued to be strong in the month of July,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

“However, as the labor market tightens employers may find it more difficult to recruit qualified workers.”

Mark Zandi, chief economist of Moody’s Analytics, said,

The American job machine continues to operate in high gear. Job gains are broad-based across industries and company sizes, with only manufacturers reducing their payrolls. At this pace of job growth, unemployment will continue to quickly decline.”

Some more charts: total employment change - second worst month since October:

Change in Total Nonfarm Private Employment by Company Size

Full Breakdown:

<br />
     ADP National Employment Report: Private Sector Employment Increased by 178,000 Jobs in July<br />

And finally a little reminder...

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FreeShitter's picture

Dow 22k my bullish bitchez...

MFL5591's picture

Death to globalism and get rid of these fucking computers and take our lives and country back.  No one needs a goddamn email or text message every 5 seconds.  These stupid phones and electronic communist instruments are dangerous to mankind!

TheDude1224's picture

Manufacturing margins are HORRIBLE! If you aren't making 300% on your products, then you are going to lose. Between the insane amount of taxes (between 75 and 80%) and the tightening margins...Amazon, Walmart,, etc. being in manufacturing is for the clinically insane. I'm in low tech, low volume, and if I didn't sell directly to businesses...I would be dead.

shizzledizzle's picture

There's a whole generation out there that hasn't had the "opportunity" to learn about taking profits. It's an expensive lesson.

Bill of Rights's picture

Economy is is good shape says Goldman....GO SHOPPING FOOLS!...

I am Jobe's picture

What does USA manufacture, Obesity, Sex, Bull Shit and o Yeah Netflix along with bomb making 

Byte Me's picture

Tou forgot terrorizzm... Drugz Whore..


Leftoid psedopolitik.. Pee sea correctsummtoranuvver...

totenkopf88's picture

Labor market tightening and yet wages don't budge. 300K jobs need to be added monthly to keep up with population growth so these #s are anemic, at best.

I am Jobe's picture

Amazon is hiring 50K across the USA to be slaves. FOXCONN building in WI . Automation picking up. No way this economy for decades to come going to add jobs. 

totenkopf88's picture

FOXCONN in WI is a fucking scam

JMT's picture

Most of those 50,000 new jobs will be FULL TIME positions at an average salary of at least $80,000 a year 



{{“However, as the labor market tightens employers may find it more difficult to recruit qualified workers.”}}


This is the most important take away.  Many white collar positions have remained unfilled because employers cannot find qualified (or in some cases any) candidates.  In the past a job post would get 50 applicants, now you are lucky if you get 5

ReturnOfDaMac's picture

Yea, folks no longer replying to job posts for purple squirrels.  The one's where you need a perfect  fit like 30+ years experience in Ruby programming. They know that job is for an H1b they have already picked out and just making the ad to comply with the law.

JMT's picture

No 30 years would make you way overqualified. 2 - 7 years is best but many job requirements are mostly wishlists. many people get hired with just 50% or less of the listed requirements. 

ReturnOfDaMac's picture

I exaggerate to make the point but yea wishlists.  Most of which have nothing to do with the job or the applicants capabilities.  Used to be that companies were smart enough to know that people adapt and learn new skills all their lives.

jamesmmu's picture
Seattle’s Minimum Wage: An Experiment in Democracy Gone Wrong

Handful of Dust's picture

I thought it looks more like an experiment in Socialism.

samsara's picture

4000 MFG jobs gone?    How many freaking MFG jobs are left anyways?

10,000 total?

sgt_doom's picture

Now that is one tricky question because --- and I'm not being facetious here --- they count a number of peculiar categories as manufacturing, including fast food jobs, which I believe was added during the last Bush Administration.

A. Boaty's picture

What is this thing called "manufacturing"?

ReturnOfDaMac's picture

Oh it's where you assemble bread, a fried meat patty, lettuce and tomatoes into a finely honed product.

shizzledizzle's picture

This train is bound for nowhere! All aboard!!! 

Silver Savior's picture

Atleast it has a bridge to nowhere it can cross.

rejected's picture

Pretty charts.

silverer's picture

Cloward Piven worked. Obama had eight years to build the bomb and light the fuse. No way to dig out of 20 trillion in debt now with declining productivity. And yet Congress wants more money to spend each year. Stupid American sheeple. The problem stared in 1983. That's when Americans should have hit the streets. Way, way too late now. I don't care if you brought back the Founding Fathers. They would tell you that you asked for help way too late, and they would pray. That's about all we have left to do now.

Dg4884's picture

If anyone gets caught holding the bag on this facade, they have only themselves to blame.  This economy is being set up for a depression that will make 'the depression' look like a blip on the screen.  I am now out of the market (except for some small stuff).  The perfect storm has been set up for Trump to take the fall and it is going to get ugly.  Same sh!t under Obama, they just kept the kabuki theater open 24/7.  Would have continued it under Killary if she got in. 

Run away as fast as you can and turn your worthless paper into tangible assets. 

how_this_stuff_works's picture

" This economy is being set up for a depression that will make 'the depression' look like a blip on the screen. "

My dad, who'd be over 100 now, rest his soul, used to shake his finger at me and tell me back in the early 80s that "one day, there'll be another depression like '29, only it'll make '29 look like a cake walk."

I scoffed, assuring him .gov would NEVER let that happen. He's lookin' like a genius to me now.

Haitian Snackout's picture

Remember back around " 90 " when the population was around 250,000,000 and anything below 400,000 was considered weak? Now with 330,000,000 a 190,000 print is considered robust. And most of them service jobs at that. But no worries, they'll probably revise that one down later too.

Quivering Lip's picture

65000 business and professional jobs is laughable, but 13000 new banking jobs is just ridiculous. Must be a lot of new banks opening up out there. 

Silver Savior's picture

I went on CNBC before I came here and they said the ADP report puts hiring in high gear. lol. I was laughing so hard. I go to CNBC to see the latest lies the sheeple are being fed then I hedge against it. It's like I am listening in. The whole site is a joke. They would have you believing everything was smooth sailing but to be fair it's all the mainstream news sites.

Their audience just reminds me of a suit and tie type driving a Tesla and looking at fake charts all day. Also thinking fiat currency is real money.

Dode415's picture

How many more robots employed in manufacturing while the jobs were reducing ?

sgt_doom's picture

Sonny, the National Robotics Association says you ask too many questions!

Silver Savior's picture

I find it kind of funny and ironic that my town and sister town are losing both Bank of Americas. The only branches! Things must be bad when theives have a hard time stealing. The fact is when you take all the data everywhere everything points to a collapse. 

And it just keeps getting worse!

wobblie's picture

And on Morning Joe, L. Blankfein and M. Bloomberg were saying the economy's fine. Shows you what scum billionaires and Wall Street are.

silverer's picture

But, but...the Dow's at 22,000!

JailBanksters's picture

Highest DOW Ever !!

gdpetti's picture

Finally, a nice good topping action, as they really, really like those round numbers....

moonmac's picture

Manufacturing is the worst! It’s depressing seeing these guys in a 95 degree sweatshop making $9/hr running dirty greasy machines all day cranking out fumes and spitting up metal dust into their lungs while we all sit in our offices with the exhaust from our A/C units discharging back into the plant. It makes me even sadder knowing how the criminals at the Fed and their corrupt cronies on Wall Street and DC are stealing all their prosperity away that was hard earned with blood, sweat and tears.

Trying to compete in a massive deflationary technology driven globalized economy while the Fed pumps up inflation to jack up the cost of living is getting nearly impossible. Our specialized parts is what’s saving us but soon the rest of the world will start producing them so we’re on a train to nowhere fast. If the cost of living would decrease we could start competing again and our workers would gain some prosperity but that would mean Wall Street losing trillions so that will never happen.



Falling Down's picture

So at the shop I work at (2nd shift) they're putting in robots. Just one, pretty soon, but allegedly we have a 20K sq ft expansion starting this month.

My hunch is more robots are on the way, and they'll have them hooked up to all or most of the CNC machines they're getting for the expansion.

Chris88's picture

It's OK, those 30% tariffs will bring back these jobs, automated away or not.  More unicorns shitting Skittles.

gdpetti's picture

There is an easier way, just 'rebrand' all those BDS bartender/waiter jobs into manufacturing jobs.... what's in a name anyway? bartender do in fact 'manufacture' alcholic drinks do they not? So....?

Chris88's picture

Stop giving the BLS ideas.

Knave Dave's picture

More BS: "“Job gains continued to be strong in the month of July,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute."


A drop of 50,000 jobs from a month ago and undershooting expectations by about 15,000 jobs are a "strong" month?