US ADP Report: Weakness persists in U.S. labor market

Today ADP employment numbers were released from US for the month of June.

ADP number shows the US labor markets might be signaling some stress though the report has been quite volatile lately.
 

There are two things to note in the headline that,

• ADP report indicates that economy is showing strains amid trade dispute.

• May payroll saw a revision, where headline was revised up to 41,000 (from 27,000).

Key highlights –

• Non-farm private sector employment grew at 102,000 in June, median expectation was for 140,000.
• Small business sector lost 23,000 jobs, compared to 52,000 loss last month.
• Mid-sized companies added 60,000 jobs compared to last month’s 11,000 jobs.
• Large sector added just 65,000 compared to last month’s 68,000 jobs.
• Manufacturing sector payroll registered 7,000 jobs gain compared to 3,000 jobs loss last month.
• 15,000 jobs were lost in goods producing sector, compared to last month’s 43,000 jobs loss.
• Construction sector lost 18,000 jobs, compared to last month’s 36,000 jobs loss.
• Services sector remains the main job provider as payrolls added 117,000 people in June. May month’s gain was 71,000.

The USD remains well bid despite the weak report. The dollar index is currently at 96.74, flat for the day.