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

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
04:48p DGAP-PVR : ROY Ceramics SE: Veröffentlichung gemäß § 26 Abs. 1 WpHG mit dem Ziel der europaweiten Verbreitung
04:48p CERECOR INC. : Regulation FD Disclosure, Other Events, Financial Statements and Exhibits (form 8-K)
04:48p CONTAGIOUS GAMING : Announces 2017 First Quarter Financial Results
04:46p SYNGENTA : With 29 new soybean varieties, Syngenta offers growers more yield-maximizing solutions for 2017
04:46p BLOOMBERG : No oil freezing plan to succeed in Iran’s absence
04:46p ADANI ENTERPRISES : Reef fears raised, as Australian court approves mine
04:46p AIR FRANCE KLM : Airline KLM Royal Dutch to resume services to Iran
04:46p XPEL TECHNOLOGIES : Acquires Netherlands-based Connectin Europe B.V.
04:46p CHINA VANADIUM TITANO MAGNETITE MINING C : VTM Mining Announces 2016 Interim Results - Optimise Resources Seek New Opportunities
04:46p IMMSI GROUP : 2016 Half-Year Financial Statements
Latest news
Advertisement
Hot News 
-15.07%CAESARS ENTERTAINMENT : shares plummet as it faces $11 billion in lawsuits
7.84%USG : to sell building products distribution unit for $670 million
-15.16%Mylan to launch generic EpiPen at half the price of original
0.83%CHINA PACIFIC INSURANCE : 1st Half Net Profit Down 46% at CNY6.14 Billion
0.67%Brazil's Rousseff Defends Herself at Senate Impeachment Trial
Most Read News
02:33aDJSTATOIL : to Cut Spending, Raise Output at Giant North Sea Field
08/28 HERBALIFE : may have misled investors, SEC on impact of FTC deal, one short-seller says
08/28 BHP BILLITON : U.S. SEC paid $3.75 million to BHP Billiton whistleblower - report
08/28DJGENERAL ELECTRIC : China Sets Up Aircraft-Engine Maker
08/28DJOil Prices Lose Steam; OPEC Meeting in Focus for Cues
Most recommended articles
10:46aDJOil Prices Decline on Fed Rate Rise Jitters
10:46aDJEXOR : Profit Jumps on Fiat Chrysler Results
10:42a CAESARS ENTERTAINMENT : shares plummet as it faces $11 billion in lawsuits
10:33a APOLLO GLOBAL MANAGEMENT LLC : Caesars shares plummet as it faces $11 billion in lawsuits
10:33aDJALIBABA : India Payment Firm Paytm Raises $300 Million