Private sector adds 176,000 jobs in June: ADP

NEW YORK Thu Jul 5, 2012 8:48am EDT

Carlene Gepner of WorkSource hands out job applications at the 11th annual Skid Row Career Fair the Los Angeles Mission in Los Angeles, California, May 31, 2012. REUTERS/David McNew

Carlene Gepner of WorkSource hands out job applications at the 11th annual Skid Row Career Fair the Los Angeles Mission in Los Angeles, California, May 31, 2012.

Credit: Reuters/David McNew

NEW YORK (Reuters) - U.S. companies added more jobs in June, beating expectations for a decrease in hiring and suggesting the economic recovery has not completely lost traction.

The ADP National Employment Report said on Thursday private employers added 176,000 jobs last month, more than the 105,000 economists had forecast.

May's figures were revised up slightly to an increase of 136,000 jobs from the previously reported 133,000.

The report is jointly developed with Macroeconomic Advisers LLC.

"In isolation, this is a healthy surprise that private worker hiring came in higher than expected. I don't know if it's sustainable," said Robbert Van Batenburg, head of global research, at Louis Capital Markets in New York.

U.S. stock index futures turned positive immediately after the data, while Treasuries yields hit session highs and the dollar trimmed losses against the yen.

Analysts estimate the economy needs to create about 125,000 jobs a month to hold the unemployment rate steady.

The ADP figures come ahead of the government's much more comprehensive labor market report on Friday, which includes both public and private sector employment.

That report is expected to show overall nonfarm payrolls increased last month but remained anemic at 90,000 new jobs. Private payrolls are expected to increase by 102,000.

Economists often refer to the ADP report to fine-tune their expectations for the government's payrolls numbers, though it is not always accurate in predicting the outcome.

(Reporting By Leah Schnurr; Editing by Chizu Nomiyama)

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Comments (3)
bryan047 wrote:
The only thing that seems to have lost traction is the credibility of the dooms-dayer media, which constantly over hype the news. The relevance of the media is slipping away as a result of this long standing practice of negativity.

Jul 05, 2012 9:11am EDT  --  Report as abuse
justinolcb wrote:
that just means it’s at 0, private sector needs to add 175,000 jobs monthly just to stay even because of the young adults being added to the job market monthly – Movin’ Day starts Nov 7… jus’ sayin’ :)

Jul 05, 2012 1:59pm EDT  --  Report as abuse
zEthics wrote:
The private sector can create jobs faster than the government with efficient access to capital, but the government has to ensure capital markets are worthy of the public’s trust.

Congress must take immediate and decision action to enforce fair and efficient capital markets, allowing U.S. corporations and investors to deploy their more than $4 trillion in cash to create jobs.

Please sign the petition to the U.S. Senate Banking and House Financial Services Committee asking for improved oversight of federal banking and market regulators that have proven ineffective at not only detecting inappropriate behavior in the capital markets, but also preventing such behavior from hindering job creation and economic growth.

To read more about what we’re trying to do and to sign the petition, click here:
http://www.change.org/petitions/u-s-senate-banking-and-u-s-house-financial-services-committees-use-technology-to-provide-oversight-of-u-s-banking-and-market-regulators?share_id=HTpDoOQNJgpe=d2e

It’ll just take a minute!

Jul 05, 2012 8:45pm EDT  --  Report as abuse
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