U.S. Private Sector Hiring Lost Traction in June -- ADP
30 June 2021 - 11:04PM
Dow Jones News
By Xavier Fontdegloria
U.S. employers continued to add jobs at a strong pace in June,
albeit at a slower pace than that of May, signaling that the
healing of labor market from the pandemic continues to lag behind
the broader economic recovery.
The U.S. nonfarm private employment increased by 692,000 in
June, data from ADP National Employment Report showed Wednesday.
This is above the 550,000 rise expected by economists polled by The
Wall Street Journal.
In May, the U.S. private sector added 886,000 jobs, down from an
initial estimate of 978,000.
"The labor market recovery remains robust, with June closing out
a strong second quarter of jobs growth," said Nela Richardson,
chief economist at ADP. While payrolls are still nearly seven
million short of pre-pandemic levels, about three million jobs have
been created since the beginning of the year, she said.
Recent surveys point to current labor shortages in many sectors,
but employment should gain steam over the next months as the
services sector reopens and the pandemic retreats, economists
say.
Large businesses, those of at least 500 workers, created 240,000
jobs in June, followed by medium businesses--between 50 and 499
employees--which added 236,000 jobs. Small businesses, with a
maximum of 49 employees, registered 215,000 payroll gains.
By sector, the service-providing sector created the vast
majority of jobs, 624,000. More than half of them, or 332,000 jobs,
were added in the leisure and hospitality sector. Education and
health services gained 123,000 jobs.
Payrolls in the goods-producing sector were up by 68,000, with
47,000 in construction, 19,000 in manufacturing and 2,000 in
natural resources and mining.
"Service providers, the hardest hit sector, continue to do the
heavy lifting, with leisure and hospitality posting the strongest
gain as businesses begin to reopen to full capacity across the
country," Ms. Richardson said.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its June
employment report, which covers the same period as the ADP National
Employment Report, on Friday. Economists polled by The Wall Street
Journal are expecting it to show nonfarm payrolls up by 706,000 for
the month and the unemployment rate down to 5.6%. The ADP series
can diverge considerably from the Labor Department's data on a
monthly basis.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
June 30, 2021 08:49 ET (12:49 GMT)
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