The number of ADP payrolls in the United States changed by 692000 in June, with an expected number of 600000, compared with a previous value of 978000.
The ADP reported that construction employment increased by 47000 in June, compared with an increase of 65000 in May. Manufacturing employment increased by 19000 in June and 52000 in May. Trade / transport / utility employment increased by 62000 in June, compared with an increase of 118000 in May. Employment in the financial services sector increased by 10,000 in June and 20,000 in May. Employment in professional / business services increased by 53000 in June, compared with an increase of 68000 in May.
After the announcement of ADP employment in June, futures of the three major US stock indexes rose, with Dow futures up 0.02%, S & P 500 index futures up 0.02%, and Nasdaq futures up 0.05%. The yield on the 10-year Treasury note fell to 1.452%.
Nela, chief economist of the ADP, said the job market recovery remained strong, with strong job growth in the second quarter. Although the number of people employed is still nearly 7 million lower than it was before the outbreak of COVID-19, the total number of new jobs since the beginning of 2021 is about 3 million. Service providers are the hardest hit industry and continue to bear a huge burden. Growth in the leisure and hotel industries is strongest as companies across the country begin to return to work in full.
CNBC commented on the US ADP employment report that private sector employment grew faster than expected in June due to a surge in hotel hiring. The bad news is that the 97.8 people initially reported in the May data were significantly revised, although it was still the best month since September 2020.
CNBC expects the U.S. Department of Labor to release closely watched non-farm payrolls data on Friday, and the ADP report will serve as a reference. Economists expect non-farm payrolls to rise by 706000, compared with 559000 in May, and the unemployment rate is expected to fall from 5.8 per cent to 5.6 per cent. However, data from the ADP and the Department of Labor tend to vary widely.