ADP Job Estimate Half Expected Growth for July

ADP's employment growth estimate, based on a survey of their customers, shows weak job creation in July. The survey indicates only 48k in non-government jobs were created last month, versus an estimate of 100k. Adding in 25k for government job growth, this implies national job growth of 75k, only 58% of the current consensus for employment growth in the Friday's non-farm payrolls report of 130k.

The ADP report shows manufacturing and construction companies shedding 41k jobs last month, while services added 89k. Large companies reduced employment while small and medium sized firms added employees.

The ADP survey covers 383k business and around 23 million workers.

Yesterday, Johnson and Johnson announced they are reducing their workforce by 4%. This morning's Challenger report showed job cuts are up 15% in July of 2007, versus July of last year(which was a six year low). Year-to-date, job cuts are only down 8%, as the unemployment rate remains low.