- US private-sector jobs rose by 98,000 in June, following a 122,000 increase in May
- June marks the strongest three-month hiring stretch in over a year according to ADP data
- Education, health, trade, and financial sectors led job growth across regions and firm sizes
US private-sector job creation was solid again in June, capping the best three-month stretch for hiring in more than a year.
Company payrolls rose by 98,000 after a 122,000 increase in the prior month, according to ADP Research data out Wednesday. The median estimate in a Bloomberg survey of economists called for a 120,000 increase.
The figures support the view that the labor market has strengthened after several months of uneven hiring, as job openings have risen and layoffs remain low. If confirmed in official government data, the trend could boost bets that the Federal Reserve will raise interest rates this year to contain inflation.
Education and health services accounted for about half of the gains, followed by trade, transportation and utilities and financial activities. Almost every sector boosted headcount, and the increase was also broad-based across firm size and region.
"We know it's taking people longer to find work, but there also are signs of labor supply constraints in certain industries," Nela Richardson, chief economist at ADP and a contributor to Bloomberg Television, said in a statement.
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The ADP report, published in collaboration with the Stanford Digital Economy Lab, also showed workers who changed jobs saw a 6.6% increase in pay from a year earlier, an acceleration from the prior month. Wage growth for those who stayed put was little changed at 4.4%.
The government's employment report due Thursday, which also includes public-sector hiring, is expected to show US employers added 115,000 jobs in June. That would mark the strongest six-month stretch for hiring since mid-2024.
Looking ahead, a key question is whether the labor market will see a boost from falling energy prices and improved consumer confidence after the US and Iran agreed to an interim deal to end to the war. The Middle East conflict had driven inflation higher and pushed consumer sentiment to record lows.
ADP bases its findings on payrolls covering more than 26 million US private-sector employees.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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