The great American jobs machine stamped out 219,000 private payroll jobs in July, according to a private survey conducted by Moody’s Analytics and payroll processor ADP.
This suggests that the economy continues to expand and that employers were able to find workers despite very low unemployment. Economists had expected just 185,000 new jobs.
“The Job market is booming, impacted by the deficit-financed tax cuts and increases in government spending,” said Moody’s Analytics chief economist Mark Zandi.
What about those tariffs that so many complained were putting the Trump boom at risk?
“Tariffs have yet to materially impact jobs, but the multinational companies shed jobs last month, signaling the threat,” Zandi said.
In other words, the tariffs have alleviated the tightness of the labor market by shifting jobs to domestic employers from global corporations.
Hiring was strongest at medium sized businesses, which added 119,000 jobs. Larger businesses grew jobs by 48,000. Small businesses, employing less than 50 people, hired 52,000.
Manufacturing, education, health care , hotels, and restaurants led the July hiring boom. Manufacturing added 23,000 jobs and construction 17,000. Information technology shed 1,000 jobs.
June’s reading was revised up to 181,000 new jobs.
If the ADP numbers carry-through to the official nonfarm payrolls numbers due out Friday, the official unemployment number could drop below the current four percent.