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

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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Pamela Duncan

OOPS! Guess Huff Post won't be bragging about the dismal August numbers...sad that they gloat, anyway, about the fact that they are part-time job numbers that rise because people have to take the second jobs in order to feed their families in order to stay off of Obama's dole.

September 08 2014 at 2:19 PM Report abuse rate up rate down Reply

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
1 reply to Valerie's comment
Pamela Duncan

Valerie, I don't think that you should look down your upturned nose at the "service people" who change your tires, repair your roof and toilet, and massage your royal butt. Somebody might just see the snot in it.

September 08 2014 at 2:24 PM Report abuse +1 rate up rate down Reply

Don't believe this for onr picosecond

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

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

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

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

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

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
1 reply to mrsperlosi's comment

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

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

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 -2 rate up rate down Reply