Private payrolls grew by 237,000 in June, the highest since December 2014, according to ADP.
Analysts had estimated that private payrolls grew by 218,000 last month, up from 203,000 in May, according to Bloomberg.
The May print was revised upwards from 201,000.
Mark Zandi, chief economist of Moody’s Analytics, said in the release, “The US job machine remains in high gear. The current robust pace of job growth is double that needed to absorb the growth in the working age population. The only blemish in the job market is the loss of jobs in the energy sector. Most encouraging is the healthy rate of job growth among the nation’s smallest companies.”
All sectors and industries saw jobs growth. Services-producing sector jobs grew by 225,000, while goods-producing sector jobs grew by 12,000.
Small companies added 120,000 jobs, midsized companies added 86,000, and large companies added 32,000.
In a note to clients after the data, Capital Economics’ Paul Dales wrote: “While the ADP survey always gets a lot of attention, there are two reasons why it’s not a particularly reliable predictor of the official payrolls data. First, the average error between the ADP and payrolls data is about 40,000 in either direction. Given that the ADP has undershot payrolls in recent months, there’s every chance that June’s payroll figure will be better.”
On Thursday morning, the Bureau of Labour Statistics will release the nonfarm payrolls data.
Here’s the latest chart, from ADP, showing the pace of private payrolls growth:
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