Gains in Private Sector Employment

Recent news continues to reveal some signs the economy is on the path to recovery -- evidenced by greater than expected gains in U.S. private sector employment and gains the service sector. Private sector jobs increased in July for the sixth straight month:

MarketWatch:

U.S. private-sector employment rose 42,000 in July for the sixth consecutive monthly gain...according to the employment report from payrolls processing firm ADP released Wednesday.

...Economists polled by MarketWatch had been expecting the ADP report to show a 23,000 increase in July.

...ADP revised upward its estimate for June nonfarm private employment to a 19,000-job gain, from a prior estimate of a 13,000 gain.

The ADP private-payrolls report has been weaker than official government data based on surveys from business establishments and households.

AP on the service sector:

Growth in the U.S. service sector picked up in July, according to a trade group's survey, in a good sign for the overall economy and the job market.

The Institute for Supply Management said Wednesday its service-sector index rose to 54.3 last month, up from 53.8 in June. Economists had expected a pullback to 53 for July.

...July was the seventh straight month of expansion.

The index shows service companies have been expanding every month this year...

Major legislation passed by House Democrats to create American jobs -- Senate Republicans continue to obstruct these efforts:

SMALL BUSINESSES JOBS & CREDIT ACT-- Leverages billions in loans for small businesses through a lending fund for community banks and investments in innovative state small business lending programs; and provides tax incentives to spur investment in small businesses and the formation of new small businesses.

AMERICAN JOBS & CLOSING TAX LOOPHOLES ACT -- Helps create or save more than a million American jobs by closing tax loopholes to prevent corporations from shipping jobs overseas and sticking American taxpayers with the bill, and investing in American jobs by restoring credit to small businesses, extending tax incentives for American R&D and energy, rebuilding American infrastructure, expanding youth jobs, and providing tax relief for middle class American families.

HOME STAR JOBS ACT -- Creating 168,000 jobs in construction, manufacturing, and retail -- some of the hardest hit sectors by the Bush recession -- by providing immediate incentives for consumers to make their homes more energy-efficient.

COMPETES ACT REAUTHORIZATION -- Our innovation agenda -- investing in modernizing manufacturing; basic R&D; high risk/high reward clean energy research; and teaching science, technology, engineering and math. Supported by U.S. Chamber of Commerce, National Association of Manufacturers, Business Roundtable.