ADP Private Payrolls Rise a More-than-Expected 172,000 in June
July 07 2016 - 9:11AM
Dow Jones News
By Lisa Beilfuss
Private payrolls in June rose at the best clip in three months,
suggesting U.S. firms continue to create jobs at a healthy pace and
alleviating some concerns over May's marked slowdown.
Private payrolls across the U.S. increased 172,000 last month,
according to payroll processor Automatic Data Processing Inc. and
forecasting firm Moody's Analytics. Economists surveyed by The Wall
Street Journal expected an increase of 151,000.
May's gain, initially reported at 173,000, was revised down
slightly to 168,000.
"Job growth revived last month from its spring slump," said Mark
Zandi, chief economist of Moody's Analytics. He said the employment
market remains healthy outside of the struggling energy and
manufacturing sectors, "and Brexit won't help," but small- and
midsize companies are hiring at a solid pace, he said.
U.S. job growth slowed in recent months, with the government's
May employment report showing considerably weaker growth in
payrolls than had been expected and previous months' gains revised
down, the Federal Reserve said in its June meeting minutes released
Wednesday. While a strike at Verizon Communications Inc. dragged
down May's payroll figure, weakness was broad-based with
construction companies, manufacturers and miners together cutting
36,000 jobs, temporary head counts dropping by 21,000 and service
providers significantly slowing hiring.
ADP's May report didn't similarly reflect softer hiring, largely
because of its methodology. The report is based on data collected
from ADP clients in addition to lagged government figures -- it
doesn't aim to replicate the nonfarm payrolls survey -- and it
didn't include the Verizon strike or adjust for it.
Some job market indicators, such as the number of Americans
filing for unemployment benefits and those quitting their jobs,
have continued to suggest a healthy market.
The June ADP report comes a day before the Bureau of Labor
Statistic's employment situation report. Economists polled by The
Wall Street Journal expect nonfarm payrolls to have risen 165,000
last month, up from 38,000 in May. The unemployment rate is
expected to tick up to 4.8% from 4.7%, where it unexpectedly fell
because of sharp labor market shrinkage.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
July 07, 2016 08:56 ET (12:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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