US private employers brought on 98,000 jobs in June, payroll processor ADP said Wednesday, missing expectations.
Economists surveyed by Bloomberg had predicted a gain of 120,000 positions, roughly on par with May’s increase.
About half of June’s growth was concentrated in education and health services, according to ADP’s data, while the financial activities sector gained 14,000 positions.
“The pace of hiring is telling a story of both supply and demand,” ADP chief economist Nela Richardson said in a statement. “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 federal government’s employment situation report, due to be published Thursday, is expected to show a gain of 115000 positions — a moderation from May’s blowout jobs report, but still well above the “breakeven rate,” or the number of jobs the economy needs to avoid rising unemployment.
Other data released this week offered some additional green shoots: layoff announcements fell in June, and job openings for the previous month came in stronger than economists had predicted. Still, hiring remains weak.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
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