Private sector employment increased by 98,000 jobs in June (consensus: 112,000 Prior: 122,000) and pay was up 4.4 percent year-over-year according to the June ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
Goods +2K versus +8K last month
Service +96K versus +114K last month
Small business +53K vs +67K prior
Medium businesses +29K vs +17K last month
Large businesses +25K vs +40K last month
Wages:
Wages for job stayers 4.4% vs 4.4% last month
Wages for job changers 6.6% vs 6.5% last month
Job creation was uneven in June. Financial activities and information were among the gainers, while leisure and hospitality delivered a sixth month of weak hiring.
ADP Chief Economist says: “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.”
The market reaction to the release was rather muted as we await the more important NFP report tomorrow.
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP’s Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP’s fine-grained data to provide a representative and high-frequency picture of the private-sector labor market.