Hiring at U.S. companies rebounded less than forecast in June, according to a private report that may signal tepid payroll growth ahead of the government’s monthly jobs report Friday, Bloomberg reports.
Private payrolls increased by 102,000 after an upwardly revised 41,000 in May, according to ADP Research Institute data released Wednesday. That fell below almost all estimates in a Bloomberg survey of economists that had called for 140,000 jobs.
The report signals a cooling trend just ahead of the Labor Department’s June employment report Friday, which is projected to show nonfarm payroll growth picked up to 164,000 while the jobless rate held at a 49-year low of 3.6%. ADP had previously reported the May reading at 27,000, though even with revision the tally remains the weakest number since 2010.
Goods-producing jobs shrank by 15,000, driven by an 18,000 loss for construction. Service-provider employment increased by 117,000.
A separate report from Labor Wednesday showed filings for U.S. unemployment benefits declined for the second time in three weeks, a more encouraging sign for the job market.