Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

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
0
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
0
Latest news
Date Title
05:25a CITY OF MINNEAPOLIS MN : Traffic control agent struck by car urges drivers to be careful (3/28)
05:25a NFIB NATIONAL FEDERATION OF INDEPENDENT BUSINESS : Small business welcomes executive order on energy
05:24a BANK OF AMERICA : BofA Fined $45 Mln For Foreclosure Tactics Used Against California Couple
05:23a INSIDER TRADING ACTIVITY MINDBODY INC (NASDAQ : MB) – insider Sold 1,042 shares of Stock
05:23a INSIDER TRADING ACTIVITY NANOMETRICS INCORPORATED (NASDAQ : NANO) – VP Sold 4,336 shares of Stock
05:22a INSIDER TRADING ACTIVITY KITE PHARMA INC (NASDAQ : KITE) – COO Sold 10,000 shares of Stock
05:22a Diamond Resorts Reviews - Relaxing Resorts of Sedona
05:20a INSIDER TRADING ACTIVITY CARRIZO OIL & GAS INC (NASDAQ : CRZO) – Insider Sold 3,232 shares of Stock
05:20a INSIDER TRADING ACTIVITY CARRIZO OIL & GAS INC (NASDAQ : CRZO) – COO Sold 4,907 shares of Stock
05:20a INSIDER TRADING ACTIVITY CANNABIS SATIVA INC (OTCMKTS : CBDS) – Insider Sold 4,659 shares of Stock
Latest news
Advertisement
Hot News 
-68.24%OCEAN RIG UDW : Files for U.S. Bankruptcy Protection
-16.15%RESILUX : Bain Capital walks away from Resilux deal after German anti-trust ruling
-5.88%DOMACOM (ASX : DCL) talks its property platform and new partnerships
0.94%Bharti Airtel sells 10 percent stake in tower unit to KKR, Canada Pension
5.06%WOLSELEY : to change name to U.S. brand Ferguson, reflecting regional focus
Most Read News
09:16p SAMSUNG ELECTRONICS : With new phone due, Samsung dials down on safety message
06:01p Tesla deal boosts Chinese presence in U.S. auto tech
06:20p WELLS FARGO : to pay $110 million to settle lawsuit over account abuses
06:07p ARCH COAL : Trump offers federal coal to industry awash in reserves
06:16p ANTIOQUIA GOLD : Reports on Cisneros Project- Guayabito Progress
Most recommended articles
03/27 Dollar hits four-month low as Trump trade deflates
03/21 UK to investigate any UK banking involvement in 'Laundromat' case
11:14p China urges U.S. to conduct fair probe into aluminium foil imports
11:12pDJBHP Billiton Mulls Australia Iron Ore Investment
10:36p TOSHIBA APPROVES CHAPTER 11 FILING FOR NUCLEAR UNIT WESTINGHOUSE : Nikkei