ADP: Private Sector Employment Increased By 158000 Jobs In June

REUTERS Lucy Nicholson

The U.S. economy added 158,000 private sector jobs during June, Moody's Analytics and ADP found.

"Despite a slight moderation in the month of June, the labor market remains strong", said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. June's gain fell far short of the 230,000 gain in May, which was revised downward from 253,000.

Small businesses, the market sector that played a pivotal role in job creation during the recovery, added only a mere 17,000 employees in June.

In April, ADP undershot the Labor Department's estimate of private-sector jobs by 25,000.

"ADP and payrolls do not tend to diverge for more than two months", Binky Chadha, the chief global strategist at Deutsche Bank, told Business Insider. The Labor Department uses its own survey of US employers - both private and public sector.

And in March, ADP said private-sector job growth was 255,000 while the Labor Department said it was only 59,000. Economists believe overall hiring may be weakening because the number of available workers has declined as more people have gotten jobs; the unemployment rate stood at 4.3 percent in May.

The data came ahead of the Bureau of Labor Statistics' nonfarm payrolls release on Friday, and amid a wide gap between both metrics. Labor market fundamentals were mixed in June.

Despite the miss the U.S. jobs market remains firm, with the labor market continuing to tighten.

Economists polled by Reuters are looking for United States private payroll employment to have grown by 172,000 jobs in June, up from 147,000 the month before.

The report said initial jobless claims edged up to 248,000, an increase of 4,000 from the previous week's unrevised level of 244,000.

Gains in service-providing industries were centered in professional/business services (+69,000 jobs), healthcare (+33,000 jobs), trade/transportation/utilities (+30,000 jobs), financial activities (+10,000 jobs), and leisure/hospitality (+11,000 jobs).

The construction sector saw 2,000 jobs loss, compared to last month's 37,000 jobs loss.

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