Private sector adds 237K jobs in June

Private-sector employers added 237,000 jobs in June, the highest level since December.

The June growth is a faster pace than the 203,000 jobs added in May, with small businesses producing half of the month’s jobs, according to the ADP National Employment Report on Wednesday. 

{mosads}“The U.S. job machine remains in high gear,” said Mark Zandi, chief economist of Moody’s Analytics, which works with ADP to produce the report.

“The current robust pace of job growth is double that needed to absorb the growth in the working age population,” he said. 

The government is set to release its June report on the labor market on Thursday. It is expected to estimate that the economy added 225,000 jobs last month.

Zandi said the only blemish on the jobs report is continued job losses in the energy sector, which has taken a hit from the sharp drop in oil prices last year. 

But he said it is encouraging to see the healthy rate of job growth among the nation’s smallest companies. 

Payrolls for small businesses — those with 49 or fewer employees — added 120,000 jobs in June, the same as May. 

Employment among companies with 50-499 employees increased by 86,000 jobs, up from 63,000 in May. 

Large companies, which have been hurt by the weaker global economy and stronger dollar, also picked up the pace of hiring in the new report.  

Large companies — those with 500 or more employees — added 32,000 jobs in June, up from 19,000 the previous month. 

Companies with 500-999 employees bounced back to 27,000 jobs added after shedding 1,000 jobs in May. 

The largest companies — those with at least 1,000 employees — added 5,000 jobs, a drop from the 21,000 posted in May. 

The construction industry posted strong gains, although at a slower pace, adding 19,000 jobs in June, down from 28,000 in May.

Meanwhile, manufacturing added 7,000 jobs in June, after losing 2,000 in May.

Service-providing employment rose by 225,000 jobs in June, a strong rise from 192,000 in May.