US June Private Payrolls Rise 98,000, Missing Estimates
Summary
- US private-company employment rose by only 98,000 in June, falling short of market expectations and the May figure.
- Education and health services and financial activities posted gains, while natural resources and mining declined and weakness in leisure and hospitality employment persisted.
- ADP said an overall slowdown in job creation is emerging as job searches lengthen and some industries face labor supply constraints.
Forecast Trend Report by Period
US private-sector hiring slowed further in June, with job growth falling short of market expectations.
Automatic Data Processing said on July 1 that US private employers added 98,000 jobs in June from a month earlier. That was down from 122,000 in May and below the 110,000 estimate compiled by Dow Jones.
Education and health services led gains with 48,000 jobs added. Trade, transportation and utilities added 15,000, while financial activities increased by 14,000. Natural resources and mining was the only sector to post a decline, losing 5,000 jobs. Leisure and hospitality employment, often viewed as a leading indicator of economic demand, rose by just 2,000 and remained weak throughout the year.
ADP Chief Economist Nela Richardson said job searches are taking longer, while some industries are also showing signs of labor-supply constraints. For now, the overall effect is emerging as slower job creation.
The ADP private employment report is based on data collected by a private company and can differ from the US government's official nonfarm payrolls report.
Lee Jung-woo, Hankyung.com reporter krse9059@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.