Private sector employment is set to increase in June by 158,000, according to the ADP National Employment Report.
The chart below shows the prediction which came in lower in June than previous months, which tend to be higher than 200,000.
Click to Enlarge
However, ADP has a spotty record when it comes to predicting the employment numbers. For example, ADP predicted May employment numbers to come in at 253,000, however the monthly gain came in significantly lower at just 181,000.
“Despite a slight moderation in the month of June, the labor market remains strong,” said Ahu Yildirmaz, ADP Research Institute vice president and co-head. “For the month of June, jobs were primarily created in the service-providing sector.”
The goods-producing sector is set to break even as an increase in manufacturing jobs offsets the decrease other areas, including construction:
Natural resources and mining: Decrease 4,000
Construction: Decrease 2,000
Manufacturing: Increase 6,000
The service-providing sector is set to increase by 158,000 jobs, with changes in these areas:
Trade, transportation and utilities: Increase 30,000
Information: No increase or decrease
Financial activities: Increase 10,000
Professional and business: Increase 69,000
Education and health: Increase 28,000
Leisure and hospitality: Increase 11,000
Other services: Increase 9,000
“The job market continues to power forward,” Moody’s Analytics Chief Economist Mark Zandi said. “Abstracting from the monthly ups and downs, job growth remains a stalwart between 150,000 and 200,000.”
“At this pace, which is double the rate of labor force growth, the tight labor market will continue getting tighter,” Zandi said.