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Private payrolls expanded at a sharper than anticipated pace in June as small businesses expanded aggressively, new data out of ADP shows.
Payrolls surged by 176,000 positions during the month, above the 100,000 economists polled by Bloomberg had forecast.
That number was higher than the top forecast from the Street at a 150,000 gain.
Small businesses led the advance, with payrolls increasing by 93,000. Medium sized businesses, or those that employ between 50 and 499 workers, added 72,000 to payrolls, while large businesses boosted payrolls by 11,000.
Nine out of 10 jobs created during the month came in the service sector, representing 160,000 of the 176,000 reported surge. The manufacturing industry expanded by some 4,000 people.
“In spite of lingering fiscal uncertainties, it is encouraging to see companies creating jobs, particularly in the goodsproducing sector where we see positive growth following two months of job loss,” Carlos Rodriguez, CEO of ADP, says. “Since January of this year, our National Employment Report shows that, on average, businesses have added 173,000 jobs a month.”
May figures were also revised 3,000 higher, to 136,000.
Below, key output from the report.
Minutes away from the key economic report of the day: the ADP June Jobs Report.
Economists polled by Bloomberg forecast payrolls expanded by 100,000 positions this June, below the 133,000 gain seen in May.
The announcement is set for 8:15 a.m. and precedes the Non-Farm Payrolls report tomorrow.