American businesses added more jobs in June, according to the latest private company hiring report by the nation's largest provider of payroll and human resources services.
The ADP National Employment Report for private sector employment, which is produced in collaboration with Moody’s Analytics, showed that non-farm businesses created 188,000 new jobs in June,which is up from the previous month's 134,000 new jobs. So far this year, February had the most job growth with 198,000.
In a separate report, the U.S. Department of Labor reported a drop in applications for unemployment benefits for last week. 343,000 Americans filed claims, compared with 348,000 the week prior. Overall, the unemployment rate is currently pegged at 7.6 percent.
By company size, small businesses led the way, creating 84,000 jobs, 54,000 of which were at businesses with under 20 employees. Medium-sized entities created about 55,000, while large businesses, defined as more than 500 employees, created about 49,000 jobs. Eighty-five percent of the new jobs were in the service sector.
By industry, trade and transportation positions accounted for 43,000; professional/business services 40,000; construction 21,000; and the remaining 14,000 came in manufacturing and financial activities.
The service-providing sector added 161,000 jobs in June, its largest increase since February and greater than the sector’s average gain of 146,000 through the first five months of the year. Among the service industries reported by the ADP National Employment Report, trade/transportation/utilities added the most jobs with 43,000 over the month – its strongest increase since the start of 2013. Professional/business services grew by 40,000 jobs, and financial activities added 13,000 jobs, nearly double the average monthly pace through the first five months of the year.
"During the month of June, the U.S. private sector added 188,000 jobs, driven by gains across all sizes of businesses, and with small companies showing the largest overall monthly increase," said Carlos A. Rodriguez, president and chief executive officer of ADP. "Most notably, the goods-producing sector added 27,000 jobs in June, a marked improvement over the decline the previous month."
Mark Zandi, chief economist of Moody’s Analytics, said, "The job market continues to gracefully navigate through the strongly blowing fiscal headwinds. Health Care Reform does not appear to be significantly hampering job growth, at least not so far. Job gains are broad based across industries and businesses of all sizes."