Service jobs in Rhode Island grow

Posted on August 26, 2014

The number of service jobs in Rhode Island may have grown, according to the most recent ADP employment report.

Overall, private sector employment increased by 218,000 jobs from June to July according to the report.

Goods-producing employment rose by 16,000 jobs in July, down from 43,000 jobs gained in June. The construction industry added 12,000 jobs over the month, less than half last month’s gain. Meanwhile, manufacturing added 3,000 jobs in July, less than one-third the number of jobs added in June.

Service-providing employment rose by 202,000 jobs in July, down from 238,000 in June. The ADP National Employment Report indicates that professional/ business services contributed 61,000 jobs in July, down from 79,000 in June. Expansion in trade/transportation/utilities grew by 52,000, down slightly from June’s 56,000. The 9,000 new jobs added in financial activities was down 25% from last month’s number.

Mark Zandi, chief economist of Moody’s Analytics, said, “The July employment gain was softer than June, but remains consistent with a steadily improving job market. At the current pace of job growth unemployment will quickly decline. Layoffs are still receding and hiring and job openings are picking up. If current trends continue, the economy will return to full employment by late 2016.”

Payroll growth for businesses with 49 or fewer employees increased by 84,000 jobs in July. That’s down from 126,000 in June. Job growth was also down over the month for medium-sized and large firms. Employment among medium-sized companies with 50-499 employees rose by 92,000, down from 112,000 in June. Employment at large companies – those with 500 or more employees – increased by 41,000, down slightly from the previous month. Companies with 500-999 employees added 14,000, on par with June’s 15,000.