Private Sector Adds Few Jobs

Private-sector jobs in the U.S. increased by 13,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers.

Source: Source: WSJ | Published on June 30, 2010

Economists had expected ADP to report a jobs gain of 60,000 for June. The estimated change in employment for May was revised to a gain of 57,000 from an increase of 55,000 first reported.

The ADP survey tallies only private-sector jobs, while the Bureau of Labor Statistics' nonfarm payroll data, to be released Friday, include government workers.

The Census Department had hired hundreds of thousands of temporary workers for the census but began to lay off many of them in June.

As a result, said economists surveyed by Dow Jones Newswires, the BLS will probably report June total payrolls dropped by 110,000, following a jump of 431,000 in May. Among those economists forecasting private-sector jobs within the BLS data, the median projection is for a gain of 110,000.

The June unemployment rate is projected to edge up to 9.8% from 9.7% in May.

Consumer confidence has been dragged down by the lack of robust hiring in the U.S. economy. Job jitters could keep shoppers at home -- a major concern for the outlook given consumer spending is about 70% of the U.S. economy.

The latest ADP report showed large businesses with 500 employees or more added 3,000 employees and medium-size businesses hired 11,000 workers in June. Small businesses that employ fewer than 50 workers cut payrolls by 1,000.

Service-sector jobs added 30,000 last month, while factory jobs increased by 16,000.

ADP, Roseland, N.J., said it processes payments of one in six U.S. workers, while Macroeconomic Advisers, based in St. Louis, is an economic-consulting firm.

Another job report also showed very slow improvement in the labor markets that will barely cut the jobless rate.

TrimTabs Investment Research said that because of massive layoffs by the Census Bureau, the economy lost 152,000 jobs in June while private-sector hiring was positive but weak.

"Private sector added just 91,000 jobs in June, much less than the 150,000 needed to keep up with population growth," said Charles Biderman, chief executive officer of TrimTabs.

TrimTabs bases its employment estimates on an analysis of daily income tax deposits to the U.S. Treasury from all salaried employees.