Private sector adds 176,000 jobs in June: ADP
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.