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ADP: Hiring Surges in June as Employers Add 281,000 Jobs

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Sara Pezzoni, Kinston Free Press/AP
By Jeff Cox | @JeffCoxCNBCcom

Private sector job creation surged in June, with companies adding a much larger than expected 281,000 new positions, according to a report Wednesday from payroll-processor ADP (ADP).

Economists surveyed by Reuters expected the National Employment Report to show 200,000 new jobs as the U.S. economy seeks to regain traction following a brutal winter. That's up from an initially reported 179,000, which was unchanged.

As has been the trend, the service sector and small businesses led the way. Service-providing companies added 230,000 new positions, while goods producers contributed 51,000. Professional and business services was the top industry, with 77,000 jobs, while trade/transportation and utilities added 50,000 and there were 36,000 new construction positions.

The news comes a day ahead of Thursday's nonfarm payrolls report, which is expected to show 215,000 new positions overall counting government jobs. ADP's numbers, which are reported in tandem with Moody's Analytics, could cause economists to ramp up their projections.

Paul Dales, Senior U.S. economist at Capital Economics, said he's holding to his projection for 200,000 on the payroll count as he considers ADP "no longer a reliable leading indicator of payrolls," though he thinks an uptrend is in the making.

"We have pointed out before how a change in the methodology in late 2012 means that the ADP places less weight on its own survey of payrolls and more on the previous month's change in the official payrolls data," Dales said in a note. "We're more inclined to believe it this time, however, given that the increase in official payrolls slowed in May, which should have depressed June's ADP figure. The pick-up in June must therefore have been generated by ADP's own survey."

"The gains were broad-based. Every single industry added payrolls," Moody's economist Mark Zandi told CNBC. "Every company size added to payrolls. It was uniformly strong. Looking at the underlying ADP data, it looks really good."

Markets reacted positive to the numbers, with traders pushing stock market futures to slightly positive territory.

Small businesses, those that employ fewer than 50 employees, created 117,000 new jobs for the month.


Survey: US Companies Added 281,000 Jobs In June

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Valerie

Did anyone else notice that 230,000 of these "new jobs" were in the service sector??? "Service sector" is a code phrase for part-time minimum wage jobs.

I guess everyone, whose life ambition is to be a hotel maid, or a burger flipper, or a gas station attendant, or a Walmart stocker, or a grocery cashier must be thrilled beyond description at the increase in "service" jobs.

July 02 2014 at 10:10 PM Report abuse +1 rate up rate down Reply
ectullis

Don't believe this for onr picosecond

July 02 2014 at 9:59 PM Report abuse -2 rate up rate down Reply
Iselin007

They should be handing toilet paper out at unemployment for all the crap jobs this recovery is expecting to create.

July 02 2014 at 7:14 PM Report abuse +3 rate up rate down Reply
mac2jr

Was listening to flux views a few minutes ago and they seem to think that Ronald Reagan was the best president the U.S.A. has had in recent times; forgetting...

A) RR raised taxes on the citizens eight (8) times during his stay.
B) RR lied about the Iran prisoner release, President Carter did not.
C) RR lied about taking down the Berlin Wall, Brian Williams did not.
D) RR destroyed the Unions which helped both union and non-union workers get better salaries and benefits, which we are seeing today.
E) RR took us to within 2 or 3 minutes of a Nuclear War with Russia
F) RR made air travel unsafe for over a decade.
G) RR released HIV / AIDs on the public with his denial of it
H) RR set back Alternative Energy Progress by 2 to 3 decades
I) RR paved the way for the Banking Mess with his actions

Thus, if you want to vote for the WORSE President in our lifetime, RR goes to the top of the list....

Wake up America, WAKE UP,..... please...

July 02 2014 at 7:05 PM Report abuse -2 rate up rate down Reply
3 replies to mac2jr's comment
Iselin007

They claim they can't fill jobs an need to import visa workers. I hope they remember that when a major war breaks out and the average age is over 35. The aliens walk right into that one. Don't let the door hit you in the arse on the way out!

July 02 2014 at 7:03 PM Report abuse +1 rate up rate down Reply
Iselin007

The desperation of of the longterm unemployed is heart breaking. They become not in the labor force holding the unemployment rate down until finally they steal a loaf of bread or worse. The job market stinks.

July 02 2014 at 6:56 PM Report abuse +3 rate up rate down Reply
1 reply to Iselin007's comment
mac2jr

3,000,000 are now out of UE, due to Republicans in the House of Representatives...

July 02 2014 at 7:10 PM Report abuse +1 rate up rate down Reply
3 replies to mac2jr's comment
Iselin007

My state of NJ is suffering from years of high taxes. Manufacturing, Pharmasautical, Chemical, Industries have all but left the state totally dependeant on crap jobs. No party can change the outflow of jobs from the state because no party has stem the burden of high taxes.

The glory days ended mosty two decades ago but the public employees kept living the good times while the tax base waled out the door. No employer is going to build manufacturing plants here again unless the state lowers taxes and ends the excessive war on carbon.

July 02 2014 at 6:14 PM Report abuse -1 rate up rate down Reply
1 reply to Iselin007's comment
mac2jr

Perhaps you have failed to travel around New Jersey, the northeastern section is over populated, and there are NO more open spaces for building plants, roads, etc... Therefore, there will be High taxes and high salaries for those willing to stay and put up with the congestion.

South of Camden the state turns rural and is mostly bedrooms and farms, which do not demand the roads, buildings, etc., that are common in the northeast. Businesses do NOT want to go to south Jersey due to lack of roads and facilities.

West of Trenton and Jersey City is the 'rich bedroom' area of New York City, and New Jersey. This area is an upper class area of 'gentlemen farms', estates, woodlands, lakes, and such. There are roads, but the density is NOT the same as that near NYC. The people that live in these areas discourage heavy manufacturing and such.

Now can the state lower taxes, NO, not unless it divides the state into three or more tax zones and uses the money from each in each.

Can the state end the war on pollution, NO, for the rivers and the air crosses all parts of the state, and if one section is polluted, then all sections are polluted.

Can you decrease the pay and benefits of the Public Workers, NO, for those that work the Water / Sewer Plants, work the Highways, work the Bridges, etc., have to Live in New Jersey and if in the Northeast pay a premium for rent and food, if in the south he or she has to pay for transportation, and if in the western section pay for both, dearly...

Wake up America, WAKE UP..... Please... there are NO simple solutions....

July 02 2014 at 6:54 PM Report abuse rate up rate down Reply
2 replies to mac2jr's comment
mrsperlosi

Oh the one who thinks he knows it all is at it again. How unfortunate for you dear. Instead of posting your nonsense day after day why don't you do something constructive with your time like signing up for some volunteer work in your community to help the less fortunate. Posting your ridiculous and outlandish remarks helps no one and makes you like....well..quite silly doll.

July 02 2014 at 7:51 PM Report abuse -5 rate up rate down
Iselin007

Perhaps your wrong, I lived here for over 60 years. I remeber the Jersey shore before the 1967 riots. I remember the big soda bottle as you got near Newark. Both my parents had worked at Lionel Trains. My ancestors lived all around the Newark and Northern New Jersey having come from New York.

Perhaps you remember hearing about the Revolutionary War? My family had been all over the place. Perhaps you should read about the supposed Loyalist Parker Wickham who lost his properties in an act of attainer from New York or the about the longIsland reffugees who fled the Englished controlled New York.

July 02 2014 at 8:44 PM Report abuse -2 rate up rate down
mrsperlosi

Oh my as I scroll down the board I see that we liberals are posting our usual lies once again darlings. How unfortunate.

July 02 2014 at 6:05 PM Report abuse rate up rate down Reply
2 replies to mrsperlosi's comment
mac2jr

Hello, how is my favorite gal today, trust that you are in a good mood for a change and ready to provide some constructive comments as most here do...

July 02 2014 at 6:57 PM Report abuse +2 rate up rate down Reply
1 reply to mac2jr's comment
mrsperlosi

Darling not to embarrass you although you should be used to it. Your comments are not constructive. They are your one sided, narrow minded, and most often misleading point of view dear.

July 02 2014 at 7:48 PM Report abuse -4 rate up rate down
dencuddy

Mac posts facts and he is in this case Mr know it all, sorry you don't like facts.

July 03 2014 at 8:03 AM Report abuse -1 rate up rate down Reply
skcarcomed_02

teabuster2
I hate to tell you, but Bush is the worst.

))))))))))))))))))))))))

According to you fleaduster LOL. What you think doesn't hold much weight. SIMP.

What a dope you are.

July 02 2014 at 5:58 PM Report abuse +2 rate up rate down Reply
skcarcomed_02

Timothy suffers from a severe case of it's Bush's fault caused from his Bush derangement syndrome.

July 02 2014 at 5:56 PM Report abuse -1 rate up rate down Reply