Jobless rate seen falling 1/2 point a year: Moody's Zandi
NEW YORK (Reuters) - The current monthly pace of U.S. job gains will likely lower the unemployment rate by 1/2 point a year, Moody's Analytics' chief economist Mark Zandi said on Wednesday.
The ADP National Employment Report, released earlier, showed private companies added 188,000 workers in June, more than the 166,000 forecast among economists polled by Reuters.
ADP jointly developed the report with Moody's Analytics.
The U.S. jobless rate, which was 7.6 percent in May, should fall to 7.0 percent a year from now and to 6.5 percent in the summer of 2015, according to Zandi.
The steady pace of hiring is consistent with the scenario that allows the Federal Reserve to pare its $85 billion monthly purchases of bonds later this year. The central bank's bond buying has been aimed partly at lowering unemployment.
"That's the script they laid out," Zandi said during a conference call with reporters after the release of the report. "It argues for the case for tapering later this year."