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Report: 157,000 Jobs Added in June, More Than Double Estimates Report: 157,000 Jobs Added in June, More Than Double Estimates

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Report: 157,000 Jobs Added in June, More Than Double Estimates

The economy added more than twice as many jobs in June as analysts expected, according to a private-sector employment report.

Private nonfarm payroll employment increased by 157,000 from May to June on a seasonally adjusted basis, up from a disappointing May gain of just 36,000, according to the latest ADP National Employment Report. Analysts had only expected payrolls to grow by about 70,000.


Strong performance in the service, goods-producing, and manufacturing sectors contributed to the unexpectedly large increase, as did the end of short-term transitory factors, such as layoffs related to auto manufacturing plant shutdowns. The service sector gained 130,000 jobs in June, nearly three times faster than it rose in May. Employment in the manufacturing and goods-producing sectors was also strong, increasing by 24,000 and 27,000, respectively.

Large businesses -- those with more than 500 workers -- gained 10,000 jobs; medium businesses rose by 59,000; and small businesses, with fewer than 50 workers, climbed by 88,000.

While the ADP report is not a perfect predictor of official jobs numbers, analysts watch it closely for an indication of what the Labor Department’s nonfarm payroll data, which will be released on Friday, will show. According to ADP, the rate of payroll employment growth in Thursday’s report likely indicates a steady or slightly lower unemployment rate, which was 9.1 percent in May. The report suggested that economic recovery “might have found new traction” this summer.


Last month, the Labor Department reported an increase of 54,000 nonfarm jobs. Economists expect U.S. employers to add 100,000 jobs in June, according to Bloomberg News.

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