Companies in U.S. Added More Workers Than Forecast in June
Companies in the U.S. added more workers than economists projected in June as businesses prepared for a pickup in consumer demand in the second half of the year.
The 188,000 increase in employment followed a revised 134,000 gain in May that was 1,000 less than initially estimated, the ADP Research Institute reported today. Based in Roseland, New Jersey, the institute is a division of Automatic Data Processing Inc., a company that manages employer payrolls. The median forecast of 38 economists surveyed by Bloomberg called for an advance of 160,000 in June.
Companies added workers last month as home prices strengthened and Americans continued to buy cars, electronics and other goods in the face of higher taxes that took effect in January. A Labor Department report on July 5 may show private payrolls rose by 175,000 last month, according to the Bloomberg survey median forecast.
“The job market continues to gracefully navigate through the strongly blowing fiscal headwinds,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. Today’s report shows that employment advances are “broad-based across industries and businesses of all sizes,” he said.
Estimates in the Bloomberg survey ranged from gains of 100,000 to 196,000. May’s figure was revised from a previously reported increase of 135,000.
Manufacturers, construction companies and other goods-producing industries increased payrolls by 27,000. Construction employment rose by 21,000 and factories gained 1,000 jobs, today’s report showed. Payrolls at service providers climbed by 161,000.
Companies employing more than 499 workers added 49,000 jobs. Employment at businesses with 50 to 499 employees rose 55,000 and the smallest companies increased payrolls by 84,000, the report showed.
The Labor Department may report in two days that private and government payrolls climbed 165,000 in June after a 175,000 increase in May, according to the Bloomberg survey median. The unemployment rate fell to 7.5 percent, economists projected.
ADP in October changed the method it uses to calculate its employment figures dating back to 2001. The report now is derived from a larger sample and is released jointly with Moody’s Analytics.
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