ADP: June Private Sector Employment Up by 102,000

Ahead of this morning’s jobs report, ADP, Roseland, N.J., said private sector employment increased by 102,000 jobs from May to June, suggesting a jobs slowdown.

The ADP National Employment Report said small businesses contracted by 23,000 in June; medium-sized businesses added 60,000 jobs; and large businesses added 65,000 jobs. Construction jobs continued to contract, falling off by 18,000 jobs in June, while financial activities employment grew by 7,000 jobs.

“Job growth started to show signs of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market. The goods producing sector continues to show weakness. Among services, leisure and hospitality’s weakness could be a reflection of consumer confidence.”

“The job market continues to throttle back,” said Mark Zandi, chief economist of Moody’s Analytics. “Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring. Small businesses are the most nervous, especially in the construction sector and at bricks-and-mortar retailers.”

The Bureau of Labor Statistics releases its May jobs report at 8:30 a.m. ET. In April, BLS said nonfarm payroll employment jumped by 263,000 and the unemployment rate fell to a 50-year low, to 3.6 percent.