The ADP said in its national employment report for June that the private sector added 188,000 jobs, after a gain of 134,000 in May, and topping analysts’ estimates at 160,000.
The growth can be distributed to close contributions across all three company size segments; small businesses were the top hirers as they added 84,000 jobs, medium businesses added 55,000 jobs, and large businesses added 49,000 jobs.
As expected, most of the job growth came in the services-providing sector, as it added 161,000 jobs in February, compared to 27,000 in the goods producing sector.
Markets look to ADP`s report on private-sector payrolls to provide some guidance on the U.S. Department of Labor`s jobs report, which will be released Friday and includes information on both private- and public-sector payrolls.
The report sets the stage for Friday’s jobs report from the Labor Department, which is expected to show nonfarm payrolls increased by 165,000 in June, after a gain of 175,000 the month before.
The highly anticipated report is considered by many the key factor determining the Federal Reserve’s next move on its stimulus program.