Small business aids payroll boost - survey
Private sector unexpectedly gains 9,000 jobs, driven by service sector, according to payroll manager ADP. Construction sector sheds jobs for 20th straight month.
NEW YORK (CNNMoney.com) -- The private sector gained 9,000 jobs in July, primarily among small businesses and the service sector, according to a report payroll manager ADP released Wednesday.
While job growth was modest, it was much better than forecasts. A consensus of economists surveyed by Briefing.com had expected a loss of 60,000 non-farm jobs.
The gain in jobs was driven by the addition of 74,000 jobs in the service sector. Growth was also helped by 50,000 jobs added by small businesses. By contrast, large businesses shed 32,000 positions.
The construction industry lost 16,000 jobs, marking the 20th consecutive month of declines for that sector. The construction industry has lost 350,000 jobs since August of 2006, according to ADP.
Meanwhile, the hard-hit financial sector gained 4,000 jobs in July, the report said.
The July report is a dramatic improvement from June, when the private sector shed a revised 79,000 jobs on a seasonally adjusted basis, according to ADP.