ADP Jobs Report = 692,000

This morning we got the ADP private payroll report. According to ADP, the U.S. economy created 692,000 private sector jobs last month. That’s a big number. Wall Street had been expecting 600,000.

From an industry standpoint, the biggest hiring gain came from the 332,000 pickup in leisure and hospitality. The sector, which includes bars, restaurants, hotels and other related businesses, took the hardest hit from the Covid-19 pandemic but has shown strong gains during the economic reopening.

Education and health services also indicated strong gains, increasing by 123,000, while trade, transportation and utilities rose by 62,000 and professional and business services saw 53,000 hires.

On the goods-producing side, construction payrolls increased by 47,000 while manufacturing was up 19,000.

Overall, services provided the bulk of the job gains with 624,000, while goods producers added 68,000.

The official jobs report from the government is due out on Friday. I should caution you that the ADP report is not always a good predictor of what the government report will say. The consensus is for the government report to say that 675,000 jobs were created in June.

Here’s a chart with the ADP data in red and the government in black:

Tomorrow we’ll get the ISM Manufacturing report along with the jobless claims report.

Posted by on June 30th, 2021 at 12:28 pm


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