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US private-sector job growth revives in June, ADP reports

July 07, 2016

US private-sector employment rose by 172,000 jobs in June from May, according to the ADP national employment report. Average monthly job creation has edged down since the start of the year.

“Job growth revived last month from its spring slump. Job growth remains healthy except in the energy and trade-sensitive manufacturing sectors,” said Mark Zandi, chief economist of Moody’s Analytics. “Large multinationals are struggling a bit, and Brexit won’t help, but small- and mid-sized companies continue to add strongly to payrolls.”

The number of goods-producing jobs fell by 36,000, while service-providing jobs rose by 208,000.

June’s increase exceeded the median forecast of 160,000 in a Bloomberg survey of economists, which included estimates ranging from 130,000 to 200,000.

Large businesses added 25,000 jobs, up from the 23,000 added in May. Midsize businesses added 52,000 jobs in June, down from last month’s gain of 60,000.

Small businesses added 95,000 jobs in June, up from 84,00 in May.

“Since the start of 2016, average monthly job creation has slightly dropped,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Lackluster global growth, low commodity prices, and an unfavorable exchange rate continue to weigh on US companies, especially larger companies.”

The ADP National Employment report is produced by ADP (NASD: ADP) in collaboration with Moody’s Analytics.