While the pace of growth in the labor market was slower than had been expected by economists, U.S. job growth rebounded last month per ADP data. The payroll company noted that private employers added 102,000 jobs in June, TheStreet reported.
However, economists had projected a 140,000 job gain per FactSet. And, marking the slowest growth in almost 10 years, employers added only 27,000 positions in May. Economists have been poring over data releases looking for future growth indicators, with the ongoing trade war with China.
“Job growth started to show signs of a slowdown,” ADP Research Institute Vice President and Co-Head Ahu Yildirmaz said in an announcement about the latest ADP economic data. “While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market. The goods producing sector continues to show weakness. Among services, leisure and hospitality’s weakness could be a reflection of consumer confidence.”
The report from ADP “could serve as a preview for the U.S. Labor Department’s official monthly report on national employment, due out Friday,” according to the news outlet. That report is forecast to indicate that employers with the inclusion of state, federal and local government agencies “added 147,500 last month” compared to an “anemic” 90,000 new jobs back in May.
Moody’s Analytics Chief Economist Mark Zandi said in the announcement, “The job market continues to throttle back. Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring. Small businesses are the most nervous, especially in the construction sector and at brick-and-mortar retailers.”
In June, it was reported that “the latest jobs report” indicated that 75,000 jobs were created in the United States the month prior. A number of economists, as noted by Bloomberg in June, expected a gain of 175,000 jobs, and drilling down, the unemployment rate was 3.6 percent, holding steady from rates seen previously.