Companies added more workers than expected in June
Companies in the United States added more workers than forecast in June, signaling that job growth might pick up in the second half of the year, Bloomberg reported.
A private report from ADP Employer Services said that a 157,000 increase followed a revised 36,000 gain the prior month. Economists had predicted an advance of only 70,000.
“The report suggests that what we saw in May payrolls was a slowdown caused by temporary factors, not a deterioration,” said Sean Incremona, a senior economist at 4Cast Inc., in an interview with Bloomberg. “Companies continue to add workers at a moderate pace. We continue to slog along.”
Small companies, defined as those with fewer than 50 employees, added the most workers, 88,000. Medium-sized businesses – 50 to 499 employees – added 59,000. Large businesses added 10,000 jobs.
The U.S. Department of labor said today that first-time applications for unemployment benefits fell to a level that show the labor market will take time to heal. Claims dropped by 14,000 to 418,000 in the week ended July 2.