Published: Sat, July 07, 2018
Finance | By Claude Patterson

USA employment up 177K in June, ADP says

USA employment up 177K in June, ADP says

Yahoo Finance's Seana Smith, Myles Udland and Dion Rabouin break down the state of the labor market ahead of the June Jobs Report.

ADP reported that overall private employers added 177,00 jobs last month, a slight drop-off from the average this year of 202,667 a month as companies say they're having a tougher time finding skilled workers.

Private-sector hiring remained robust in June but slowed slightly from May's pace, payrolls firm ADP said in a monthly report on Thursday (Jul 5). Over the past 12 months, this sector has gained 285,000 jobs, with about three-quarters of them involving durable goods such as metal products, computer parts and cars.

WASHINGTON American businesses added 177,000 workers in June, a sign of health and resilience for the US labor market and economy, according to a private survey.

The report said most of the job growth occurred in professional and business services, manufacturing and healthcare - while retail trade lost jobs. The education and health sector added 54,000. The trade/transportation/utilities industry added 24,000 new jobs, while the financial activities industry and other services industry added 7,000 each.

On the same day that the Trump administration began imposing tariffs on $34 billion in Chinese imports and China retaliated with its own tariffs, the job gain showed that the 9-year-old US economic expansion - the second-longest on record - remains on solid ground. But the hiring gains are now creating a challenge for employers to find capable workers, said Mark Zandi, chief economist at Moody's Analytics, which helps put together the report. The problem, he says, will get worse if hiring continues at its current pace. It increases pressure to raise wages, and even curbs business growth if there are not enough people to do the work. Average hourly wages have been flat for the past year after adjusting for inflation, according to the Labor Department.

There may be a bit of a more muted expectations for Friday's key payrolls and unemployment report from the U.S. Department of Labor. Economists are forecasting that economic growth accelerated to an annual pace of roughly 4 percent during the April-June quarter, about double the previous quarter's pace.

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