Medium-sized businesses, which employ 50 to 499 people, added the most payrolls in July as they created 119,000. Larger businesses, meanwhile, expanded their payrolls by 48,000. Small businesses, which employ one to 49 people, say payrolls grow by 52,000.
Service-providing companies expanded their payrolls by 177,000, led by gains in education and health services as well as professional services. Education and health services payrolls grew by 48,000 last month, while professional services created 47,000 jobs. Information technology, however, lost 1,000 payrolls in July.
Meanwhile, the goods-producing sector saw payrolls increase by 42,000, led by a 23,000 gain in manufacturing jobs and 17,000 additions in construction.
“The labor market is on a roll with no signs of a slowdown in sight,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Nearly every industry posted strong gains and small business hiring picked up.”
The job gains come as Corporate America enjoys lower taxes compared to last year. In December, the Trump administration slashed the federal corporate tax rate to 21 percent from 35 percent.