Hiring in the private sector
picked up faster than expected last month.
According to the most recent ADP
National Employment Report, businesses added 188,000 jobs in June, up from 134,000 jobs added in May.
That was the strongest pace of hiring since February and beat expectations.
Economists were expecting only 150,000 jobs in the month, according to
Briefing.com.
The biggest gains were among small businesses, which added
84,000 jobs in June. Medium-sized firms added 55,000 positions, while large
companies (those with over 500 employees) added 49,000 jobs.
The financial service sector had a particularly strong
showing, adding 13,000 jobs which represents the biggest gain in over a year.
Construction added 21,000 jobs, its biggest increase since January. The
manufacturing sector managed a modest uptick, reversing two months of losses.
According to some economists, the growth in jobs was somewhat
unexpected because of the recent budget cuts and furloughs by the federal government.
Additionally, some feel that the effects of Obamacare are not having much of an
impact on hiring at this time.
The ADP report was seen as a positive sign for the broader
job market because it is considered a preview to the much-watched government jobs report, which includes public and private
sector positions. The government's report comes out Friday, and is expected to
show the economy added 155,000 jobs.
More good news on the jobs front: A separate report released
Wednesday showed that 343,000 people filed for first-time unemployment claims
last week, 5,000 fewer claims than the week before.