The latest report showed that private wage growth increased at a faster rate than expected in June following driven by hiring in the hospitality sector.
The corporate sector managed to add 692,000 jobs in June This figure far surpassed the forecasts of economists who were targeting as many as 550,000 jobs added. However, the number showed a decline from 886,000 jobs recorded in May.
From an industry standpoint, the largest recruitment came from the hospitality and recreation sector which employed 332,000 workers. The sector, which includes bars, restaurants, hotels and other related businesses has gotten the worst temps from Covid-19 yet has shown the biggest gains during the economic reopening.
Education and health services also showed strong increases, increasing by 123,000, while trade, transportation and utilities increased by 62,000 and professional and business services saw an increase of 53,000 employees.
ADP chief economist Nela Richardson opined that employment indicators are getting stronger with an increase of 3 million jobs this year despite still not reaching the full workforce achieved before the pandemic outbreak.
The ADP employment report is an early indication for market players in getting an early indication of the NFP data to be released by the Department of Labor on Friday.
Economists expect NFP data to increase by 706,000 compared to May’s record of 559.00. The unemployment rate is projected to drop to 5.6% from 5.8%.
The US Dollar Index strengthened by 0.16% to a trading level of 92.188.
