Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

ADP June Private-Sector Hiring +176,000; +108,000 Expected

share with twitter share with LinkedIn share with facebook
share via e-mail
07/05/2012 | 02:51pm CEST
   By Michael S. Derby 

NEW YORK--Private-sector hiring jumped by an unexpectedly strong pace in June, according to a report Thursday.

Firms added 176,000 jobs last month, according to payroll processing giant Automatic Data Processing Inc., in a report compiled with forecasting firm Macroeconomic Advisers LLC. Economists surveyed in advance of the report's release had expected to see it show a 108,000 gain for June.

"The gain in private employment is strong enough to suggest that the national unemployment rate may have declined in June," said Joel Prakken, of Macroeconomic Advisers. "Today's estimate, if reinforced by a comparable reading on employment from the Bureau of Labor Statistics tomorrow, likely will ease concerns that the economy is heading into a downturn," he said.

The ADP hiring report comes on the eve of the closely watched government-produced nonfarm payrolls report. Due Friday, the June release is expected by economists to show a very modest 95,000 gain, versus the 69,000 advance seen in May. Compared to the start of the year, employment data has shown a marked deceleration in recent months, raising considerable worry about the path of the economy. The slowing in hiring has been matched by other worrisome data, raising fears the U.S. may again slip back into recession.

The ADP report is different than the government's release because it counts only private-sector jobs. While closely watched, the ADP report often differs by a notable margin from the government payrolls report, causing some economists to question the report's utility. At the same time, a significant factor in what is currently weighing on the U.S. economy is the government sector, where there has been a steady loss of jobs amid troubled state and local government finances.

ADP is a major payroll processor, saying it handles payments for one in six U.S. workers.

The ADP data's track record led at least some observers to view the June data cautiously. "Given the poor historical performance of this indicator in correctly predicting the performance of the official payrolls report, we see no reason to revise our current forecast for a 100,000 rise in payrolls," said Millan Mulraine of TD Securities.

The ADP report arrives on a day where several of the world's major central banks moved to provide additional stimulus. The European Central Bank cut its key lending rate to a record low amid concerns about economic conditions in that region, while the Bank of England said it again would inject liquidity into its own economy. Meanwhile, the Bank of China also lowered interest rates, again from a concern about the pace of economic activity. Those moves follow the Federal Reserve's recent decision to continue forward with its own program to provide continued support to the U.S.

In another private sector report, TrimTabs Investment Research said its estimate of June hiring stood at 75,000 jobs. That firm's estimates are based on a formula involving daily tax receipts.

Write to Michael S. Derby at michael.derby@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
12:12a TD AMERITRADE : and TD bank nearing $4 bln deal to buy Scottrade- source
12:12a OU FOOTBALL : Texas Tech fans greet Baker Mayfield with indifference
12:12a RENT COM AU : Appendix 4G 30 June 2016
12:12a AGL ENERGY : Appendix 3E - Daily share buy-back notice
12:11a PACIFIC AMERICAN COAL LTD (ASX : PAK) Non-renounceable Entitlement Offer to Raise Approx $1.8M
12:10a Dyesol Ltd CSIRO Letter of Intent
12:09a DYESOL LTD (ASX : DYE) CSIRO Letter of Intent
12:07a EVOLUTION MINING : 2016 Notice of Meeting and Proxy Form
12:07a EVOLUTION MINING : Appendix 4G and Corporate Governance Statement
12:06a The Monday Report
Latest news
Hot News 
-5.41%MOODY : Says Justice Department Preparing Complaint
4.21%Microsoft shares hit high as cloud business flies above estimates
-3.00%AT&T Is in Advanced Talks to Acquire Time Warner
-7.87%LA Z BOY INCORPORATED : Z-Boy Lowers Expectations for Current Quarter
6.43%TOURMALINE OIL : Shell sells non-core Canadian oil and gas assets for $1 billion
Most Read News
06:01p GENWORTH FINANCIAL : Announces Preliminary Charges For The Third Quarter
06:02p EVOLUTION MINING : 2016 Annual Report
06:02p MAGELLAN FLAGSHIP FUND : Update - Dividend/Distribution - MFF
06:02p OTHERLEVELS HOLDINGS LIMITED (ASX : OLV) Announces Real-Time Messaging Content Option
06:06p The Monday Report
Most recommended articles
10/21 Second wind for stocks as earnings turn positive
10/21DJTWITTER : Hundreds Evacuated from London's City Airport
10/21DJFACEBOOK : Employees Pushed to Remove Trump Posts as Hate Speech
10/19DJGold Prices Boosted by Weaker Dollar