Home Economy June U.S. Private Sector Adds 158,000 Jobs, Missing Economist Expectations

June U.S. Private Sector Adds 158,000 Jobs, Missing Economist Expectations

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The United States added 158,000 jobs in the private sector in June, missing economists’ expectations. The ADP National Employment Report, provided by a survey via Reuters, had the private sector adding 140,000 – 233,000 jobs, with the average forecast of 185,000 jobs added.

ADP figures are provided before the more comprehensive report from the U.S. Labor Department, which is slated for a Friday release. The Labor Department’s report will include employment in both the public and private sector.

Unemployment rates are forecasted to remain at 4.3%.

Private payroll gains for May were revised down from 253,000 to 230,000.

The news comes as jobless claims data shows that more Americans are filing for unemployment. The increase marks the third straight week of rises in unemployment filings, as automakers continue to close assembly plants for seasonal retooling.

State unemployment benefits rose by 4,000 on a seasonally adjusted basis to 248,000 last week, according to the Labor Department. Economists also polled by Reuters forecasted a drop in jobless claims to 243,000.

The rising unemployment remains below the 300,000 threshold, which is an indicator of a healthy job market. Unemployment has remained below 300,000 for 122 straight weeks, marking the longest stretch of a healthy job market since 1970.

Jobless rates remain at 4.3%, with the market near full employment.

Jobless claims data over a four-week period showed that jobless claims rose just 750 to 243,000 last week. The four-week moving average is considered a better measurement of the market’s trends.

Michigan, a hub for automakers, had an increase of 1,159 unadjusted claims last week.

Slower summer sales has also caused General Motors (GM) to extend their traditional summer shutdown, as sales remain low and inventory continues to rise. Auto sales, reported on Monday, have fallen for the fourth straight month in June, as demand is shrinking and layoffs have hit several auto manufacturers.

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