Wednesday, June 30, 2010

ADP Employment Report: Private Payrolls Up Only 13,000

In June, according to the ADP Employment Report, private sector payrolls rose by 13,000. This followed an upwardly revised increase of 57,000 over the month of May (previously an increase of 55,000). June was the fifth consecutive month of private payroll expansion; however, this was a significant deceleration from the prior months. June’s number was the weakest since February. This only modest increase in private payrolls coupled with the likelihood that government sector jobs fell in June due to the expiration of the census hiring, suggests that Friday’s Bureau of Labor Statistics job growth number will be negative.

The increase over the month was driven by growth of service sector jobs, which increased by 30,000, but this was a deceleration from over 70,000 per month for the prior two months and the weakest number since January. Manufacturing added 16,000 jobs; however, goods producing jobs as a whole still fell by 17,000, driven down by construction and resource extraction industries.

10.06.30 (Source: Automatic Data Processing)

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