The U.S. economy added 177,000 private, non-farm jobs in June according to the monthly employment report released today by payroll-management firm ADP and its partner Moody's Analytics. The seasonally adjusted result is 6.35 percent lower than May's revised addition of 189,000 jobs, but it marks a 14.94 percent increase from last June, when 154,000 jobs were created.
“The labor market continues to march towards full employment,” said ADP Research Institute vice president and co-head Ahu Yildirmaz in a press release. “Healthcare led job growth once again and trade rebounded nicely.”
“Business’ [sic] number one problem is finding qualified workers,” said Moody's Analytics chief economist Mark Zandi in the release. “At the current pace of job growth, if sustained, this problem is set to get much worse. These labor shortages will only intensify across all industries and company sizes.”
Small businesses—firms that employ between one and 49 employees—gained 29,000 jobs in June. Within that group, firms that employ fewer than 20 people added 16,000 jobs, and firms with 20 to 49 employees created 13,000 new positions.
Mid-sized businesses—those with 50 to 499 employees—accounted for the largest share of employment gains by company size for the eighth consecutive month, with 80,000 positions added.
Large businesses, consisting of 500 employees or more, added 69,000 jobs. Within that figure, businesses employing 500 to 999 people gained 22,000 jobs, and companies with 1,000 or more employees added 46,000 positions (The discrepancy is likely due to a rounding error by ADP firm).
The service-providing sector—which has shown the strongest growth in the ADP's job report for 15 consecutive months—contributed 84 percent, or 148,000 jobs, of the total gains in June. This sector encompasses jobs in professional and business services; trade/transportation/utilities; information; financial activities; education and health; leisure and hospitality; and other services. Six of these seven subsectors experienced growth in June, with only the information subsector reporting a decrease of 2,000 jobs.
Employment in the professional and business services subsector—which includes architecture and engineering firms—added 33,000 jobs, a nearly 46 percent decrease from last month. This subsector accounted for 22 percent of all service-providing sector jobs added in June.
The goods-producing sector, which includes jobs in natural resources and mining, construction, and manufacturing, added 29,000 jobs. Within that figure, the construction subsector gained 13,000 jobs, or 45 percent of the jobs added in this sector in June. The natural resources/mining subsector added 5,000 jobs, while the manufacturing subsector added 12,000 new positions.
ADP's national employment report is often used as a precursor for the monthly Bureau of Labor Statistics jobs report, which will release its June edition on Friday.
For more information, read the full employment report from ADP.