USA private sector payrolls miss forecasts in June, ADP says

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Pantheon Macroeconomics
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06 July, 2017

Employers added a seasonally-adjusted 153,000 jobs during the month, payroll processor ADP said.

US businesses added a modest 158,000 jobs in June, a survey found, a sign that hiring has decelerated but remains healthy enough to lower the unemployment rate over time.

Economists had expected an increase of about 185,000 jobs compared to the addition of 253,000 jobs originally reported for the previous month.

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

ADP said private sector employment climbed by 158,000 jobs in June after jumping by a revised 230,000 jobs in May. That was below the 180,000 jobs that a consensus of economists had forecast.

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

Companies employing 500 or more workers increased staffing by 50,000 jobs; payrolls jumped by 91,000 at medium-sized businesses, or those with 50 to 499 employees; while small companies' payrolls rose by 17,000.

By sectors, services accounted for all of June's increase, with payrolls increasing 158,000, especially among professional and business service companies which accounted for 69,000 new hirings.


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