Employment in the private sector rose more than expected in June, led by gains in small-business jobs, according to a report Thursday from ADP and Moody’s.
“Job growth revived last month from its spring slump. Job growth remains healthy except in the energy and trade-sensitive manufacturing sectors. Large multinationals are struggling a bit, and Brexit won’t help, but small- and mid-sized companies continue to add strongly to payrolls,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement.
Private sector jobs grew by 172,000, while economists polled by Reuters forecast a gain of 159,000. The May number was revised down to 168,000 from 173,000.
Small businesses, those with fewer than 50 employees, accounted for 95,000 of those jobs, up from 84,000 in May.
Medium-sized businesses, those with an employee count between 50 and 499, added 52,000 jobs, down from 60,000 in May, while large businesses accounted for an extra 25,000.
However, the employment picture is not as positive within some industries.
ADP said construction jobs fell by 5,000 in June, offsetting a 9,000 gain from the previous month. Manufacturing shed 21,000 jobs last month, an acceleration in losses from May.
“Since the start of 2016, average monthly job creation has slightly dropped,” Ahu Yildirmaz, vice president and head of the ADP Research Institute, said in a statement. “Lackluster global growth, low commodity prices and an unfavorable exchange rate continue to weigh on U.S. companies, especially larger companies.”
This is a breaking news story. Please check back for updates.