Posted on July - 06 - 2011
US private sector hiring recovered in June: ADP
WASHINGTON – THE US private sector served up a burst of hiring in June but new claims for unemployment insurance remained high at the end of the month, according to new data released on Thursday.
The tentatively positive data sent US markets higher as economists raised their forecasts for Friday’s much-awaited release of more comprehensive national data on job creation and the unemployment rate for all of June.
Payrolls firm ADP said on Thursday that private businesses, excluding the farm sector, added 157,000 jobs in June, a solid jump after the tepid 36,000 increase in May over April. Meanwhile the Labor Department said unemployment claims fell to 418,000 in the week to July 2, down from 432,000 a week earlier.
Both figures were better than economists had expected, but neither was stellar: the ADP figures were still off the 200,000 monthly pace of job creation in the first quarter.
And the jobless claims were still well above the 400,000 mark, after several weeks in February and March when the weekly figures held below that threshold, giving hopes at the time of a strong economic recovery.
The new ADP figures showed solid hiring both in the services sector – the largest segment of the US economy – and manufacturing, with small companies leading the hiring. But with the jobless rate at 9.1 per cent, some 3.7 million Americans continued to collect unemployment insurance during last month, according to the Labor Department. — AFP
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