Private businesses across the U.S. added 185,000 jobs in June, payroll processor ADP says in its monthly report, released this morning in advance of the government’s official report due out Friday.
The relatively lackluster gains possibly signal that the Labor Department will report a slowdown in hiring after solid gains the past three months on Friday, USA Today reports. The employment reports for July and August are seen as pivotal in helping the Federal Reserve determine whether to raises interest rates in September for the first time in nearly a decade.
Economists surveyed by Bloomberg estimated ADP would tally 215,000 private-sector job gains for July. They predict the Labor Department’s closely watched employment survey of both private and public sectors will report 227,000 additions last month.
ADP attempts to foretell Labor’s private-sector employment total. Although the two reports often have differed significantly this year, both have reflected similar broad trends and recorded 200,000-plus job gains the past two months.
The economy was slowed in the first half of the year by harsh weather and the effects of low oil prices and a strong dollar on business investment and manufacturing. Those forces are still curtailing payroll advances.
“Job growth is strong, but it has moderated since the beginning of the year, says Mark Zandi, chief economist of Moody’s Analytics, which helps ADP compile the report. “Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown.”
In July, ADP said, large companies added 64,000 jobs; midsized ones, 62,000; and small businesses 59,000. Professional and business services led the job gains with 42,000. Trade, transportation and utilities added 25,000 jobs and construction saw an increase of 15,000. Manufacturers added 2,000.
