U.S. private employment rose at a notably higher-than-estimated rate in June, according to American Data Processing, fueling optimism over continued robust growth in the U.S. labor market.
The private sector added 281,000 jobs in June, the highest since December 2011 and easily topping estimates by Bloomberg that called for an increase of 205,000. This followed an increase of 179,000 jobs in May.
The ADP report showed small businesses added a massive 117,000 jobs in June, compared with 115,000 jobs from medium businesses and 49,000 from large businesses.
Services-producing jobs were much higher than goods-producing jobs, as usual, at 230,000 with the latter at only 51,000.
Economists use ADP's data to get a signal for the U.S. Labor Department`s employment report, which will be released Thursday and covers government jobs in addition to the private sector.
Forecasts are calling for 214,000 job additions in tomorrow's report, after a gain of 217,000 in May.
Note that the ADP does not necessarily reflect the government's figures. The ADP reported job gains of 179,000 in May compared with the Labor Department's 217,000.
The economy added an average 231,000 jobs a month from February through May despite harsh winter weather that battered first-quarter growth and consumer spending that has slowed recently.
Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD losing 0.18% to trade at 1.3654, compared to 1.3659 ahead of the data.
Meanwhile, stock index futures on Wall Street remained higher. The Dow indicated a gain of 0.1% at the open, the S&P 500 pointed to a rise of 0.1%, while the Nasdaq 100 indicated an increase of 0.1%.
Original headline: U.S. businesses added 281,000 jobs in June, ADP
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