US private sector employment rises less than expected in June - ADP

(Sharecast News) - Private sector employment in the US grew less than expected in June, according to figures released on Wednesday by ADP. Employment rose by 98,000 following an unrevised 122,000 jump in May, coming in below economists' expectations for a 120,000 increase.

Small businesses with fewer than 50 employees added 53,000 jobs, while medium businesses with between 50 and 499 employees added 29,000. Large business with more than 500 employees created an additional 25,000 jobs.

The service sector added 96,000 jobs, while the goods production sector saw a 2,000 increase.

The median pay gain for job-stayers was little changed at 4.4% in June, while year-over-year pay growth for job-changers accelerated to 6.6%.

Nela Richardson, chief economist at ADP, said: "The pace of hiring is telling a story of both supply and demand. We know it's taking people longer to find work, but there also are signs of labour supply constraints in certain industries.

"For now, the overall effect is a slowdown in job creation."