Automated Data Processing (ADP) reported that nonfarm payrolls rose 176,000 in June, up from a revised 136,000 in May.
Manufacturing employment increased by 4,000 in June, reversing the 4,000 decline the previous month. It is noteworthy that the ADP figures for the sector have underestimated the official gains observed by the Bureau of Labor Statistics. BLS found 12,000 net new jobs in May and 173,000 over the past six months, making it one of the bright spots in the economy. New jobs data will be released tomorrow, and they are expected to continue to show weaknesses in the overall economy, including in manufacturing.
As with past surveys from ADP, small and medium-sized businesses (e.g., those with less than 500 employees) accounted for all but 11,000 of the 176,000 increase in net new payrolls. This was true for the goods-producing sector, as well, which had no net gains in June among large establishments out of a total increase of 16,000.
Chad Moutray is chief economist, National Association of Manufacturers.
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