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The numbers: U.S. private-sector employment increased by 692,000 in June, according to the ADP National Economic Report released Wednesday. The gain was well above forecasts from economists surveyed by the Wall Street Journal who expected a gain of 550,000 jobs.
The gain is down from the strong gain in May, where ADP estimates 886,000 workers were added to payrolls. That’s down from the initial estimate last month of 978,000.
Big picture: Economists expect a strong June employment report on Friday from the U.S. Labor Department. Economists surveyed by the Wall Street Journal see nonfarm payrolls rising by 706,000 and the unemployment rate falling to 5.6%. That would be the strongest report since March
The ADP survey has been a poor bellwether month-to-month for the government’s officials employment report since the pandemic. ADP has been stronger than the government’s tally for the past three months.
Economists are watching whether supply problems persist in the labor market.
What ADP said: “The labor market remains robust…job gains have totaled more than 3 million since the beginning of 2021,” said Nela Richardson, chief economist, ADP
Market reaction: U.S. stocks DJIA SPX were set to open slightly lower on Wednesday.
