According to ADP, hiring rose by 98,000 in June, which is lower than expectations. File Photo by Jim Ruymen/UPI | License Photo
Employers hired fewer employees than expected in June with the most gains in healthcare, according to an ADP report released Wednesday.
Private sector employment grew by a seasonally adjusted 98,000 for the month, which is down from the unrevised 122,000 in May and below the Dow Jones forecast of 110,000, ADP reported.
The nonfarm payrolls are expected to be released Thursday from the Bureau of Labor Statistics. ADP’s numbers recently have typically been lower than the BLS reports recently, which have shown higher job creation, CNBC reported.
“The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries. For now, the overall effect is a slowdown in job creation,” Nela Richardson, chief economist at ADP, said in a statement.
There were 48,000 new jobs in the education and health services sector, which is a regular leader in payroll growth.
Small and large employers showed the most gains in the month, with small businesses (fewer than 20 employees) gaining 38,000 new workers, while large (more than 500 employees) gained 25,000 staff.
The only sector that dropped was natural resources and mining, which lost 5,000 jobs in June after losing 3,000 in May.
The information sector gained 7,000 jobs after losing 9,000 in May.
Other segments that gained were trade, transportation and utilities, which gained 15,000; financial activities, which gained 14,000; other services, which gained 8,000; and leisure and hospitality added 2,000.
The median pay gain for job-stayers was little changed at 4.4%, while year-over-year pay growth for job-changers accelerated to 6.6%.
