U.S. private employment rose by 176,000 from May to June, on a seasonally adjusted basis, according to an ADP report issued Thursday.
The estimated gain from April to May was revised up slightly, from the initial estimate of 133,000 to 136,000. Employment in the private, service-providing sector rose 160,000 in June, after rising a revised 137,000 in May. Employment in the private, goods-producing sector added 16,000 jobs in June.
The news left analysts somewhat sanguine about the nation's economy.
Industry added just 16,000 net new jobs, while services added 160,000, Paul Dales, senior U.S. economist with Capital Economics, said in a statement. This perhaps suggests that the slowdown has so far been confined to the smaller, industrial sector, thereby supporting our view that the plunge in the ISM manufacturing index in June may not signal gloom and doom for the wider economy.
ADP also said manufacturing employment added 4,000, reversing May's decline. Employment on large payrolls, those with 500 or more workers, increased 11,000 and employment on medium payrolls, those with 50 to 499 workers, rose 72,000 in June. Employment on small payrolls, those with up to 49 workers, rose 93,000 that same period. Of the 72,000 jobs created by medium-sized payrolls, 7,000 jobs were created by the goods-producing sector and 65,000 jobs were created by the service-providing sector.
Construction employment rose by 8,000 jobs, more than reversing the declines of the two previous months. The acceleration of employment since April does lend credence to the argument that unseasonably warm weather boosted employment during the winter months, with a payback spread over April and May, ADP said.