Private employers added fewer jobs than expected last month, according to this morning’s ADP National Employment Report. Economists surveyed by Bloomberg were looking for the addition of 140,000 jobs to private-sector payrolls. The actual tally was 102,000 jobs.
“Job growth started to show signs of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. “While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market. The goods producing sector continues to show weakness. Among services, leisure and hospitality’s weakness could be a reflection of consumer confidence.”
A Tight Labor Market
“Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Small businesses are the most nervous, especially in the construction sector and at bricks-and-mortar retailers.”
Small businesses with fewer than 50 employees shed 23,000 jobs in June, while medium-sized and large businesses added 60,000 jobs and 65,000 jobs respectively.
In the goods-producing sector, only manufacturing added jobs last month, with gains of 7,000 positions. Construction shed 18,000 jobs, while mining lost 4,000 jobs.
Several industries on the service-providing side added jobs in June, including:
- Health care/social assistance (39,000 jobs)
- Professional/business services (32,000 jobs)
- Trade/transportation/utilities (23,000 jobs)
- Education (16,000 jobs)
- Financial activities (7,000 jobs)
- Leisure/hospitality (3,000 jobs)
The Upcoming Employment Situation Summary
Friday’s report from the Bureau of Labor Statistics will contain data on jobs added to public and private payrolls, as well as the updated unemployment rate and wage growth information.
Economists polled by Reuters are expecting the report to reflect the addition of 160,000 jobs and an unemployment rate holding steady at 3.6 percent.
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