Companies have managed to expand their payrolls more than projected in July. According to payroll processing company ADP, business added 163,000 jobs last month. However that number is less than the 172,000 jobs that were added in June.
The ADP jobs report reinforces thoughts and views that the pace of hiring is picking backing up after slowing intensely in the spring, said Joel Prakken, chairman of Macroeconomic Advisers.
"Today's estimate from ADP, if re-enforced by a similar reading on employment from the BLS [Bureau of Labor Statistics} on Friday, will alleviate concerns that the economy has slipped into a downturn," Prakken said.
Although the unemployment rate is at a steady 8.2% according to a CNNMoney survey of economists, they predict the economy added 95,000 jobs in July which includes 105,000 job gains in the private sector and 10,000 job losses in the public sector.
As the November election progressively creeps up on voters, the economy and job market are and will continue to be the main focus. The economy is stuck. Job growth and economic growth are continue to weaken.
The economy added an average of just 75,000 jobs per month in the second quarter, while the growth in gross domestic product slowed to a paltry 1.5% amid weak consumer spending, government cuts and a rise in imports from foreign countries.
Despite the increase in company budgets and their ability to hire more, 163,000 new jobs initially strikes as a substantial increase for the job market, however, there are millions who are currently unemployed during the current state of the economy.
The recentt increase does prove evidence of growth, but that growth is small in comparison to the larger number of the jobless.