Hiring in the private sector made sizable gains in June, according to a recent report from ADP.
The data from the employment firm revealed 176,000 new positions were filled in the previous month, significantly higher than the figure of approximately 95,000 that economists had been predicting. The vast majority of the added jobs, 94 percent, were in small- and medium-sized businesses. The sectors with the highest levels of employment increases were the service sector, which experienced an uptick of 16,000, and the financial services sector, which added 11,000 new workers.
"The gain in private employment is strong enough to suggest that the national unemployment rate may have declined in June," said Joel Prakken of Macroeconomic Advisers. "Today's estimate, if reinforced by a comparable reading on employment from the Bureau of Labor Statistics tomorrow, likely will ease concerns that the economy is heading into a downturn," he said.
While many applauded the news, there were also signs that some industries have struggled. The recent Kronos Retail Labor Index found that the pace of hiring in the retail sector was at its slowest pace since October 2011.
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