Job creation in the US private sector slows in June

U.S. private sector employment grew less than expected in June, but a sharp drop in planned layoffs indicated stable labor market conditions last month.

The U.S. economy added 98,000 private sector jobs last month, following an unrevised 122,000 in May, according to ADP's national employment report.

Economists consulted by Reuters had predicted the opening of 118,000 jobs in the private sector.

The ADP report is prepared in partnership with the Stanford Digital Economy Lab and published ahead of the Bureau of Labor Statistics' June employment report, which will be released on Thursday (2).

The ADP has proven to be an inaccurate indicator for the office's estimate of the number of jobs in the private sector.

The number of private sector jobs likely increased by 110,000 last month, after 120,000 in May, according to a Reuters poll of economists.

As no increase in public employment is expected after the strong increase recorded in May, the estimate is that the total number of jobs created outside the agricultural sector has reached 110,000, after 172,000 in May.

The unemployment rate is expected to remain at 4.3% for the fourth consecutive month.

The job market has stabilized after a stumble last year. The government reported on Tuesday that there were 1.04 job openings for every unemployed person in May.

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Source: CNN