The ADP National Employment Report
The ADP National Employment Report for June 2016 came out on Thursday, July 7, 2016. The private sector employment estimate for June was 159,000. The report indicates an increase in private-sector employment of 172,000 in June, an increase from the downward revised 168,000 in May. This is the first month in the last four months that employment numbers have significantly beat consensus expectations.
Key highlights of the June report
On a sectoral basis in June, the service-providing sector added 208,000 jobs, professional and business added 51,000 jobs, financial activities increased by 2,000 jobs, and trade, transportation, and utilities (XLU) combined added 55,000 jobs. Goods-producing lost 36,000 jobs, manufacturing shed 21,000 jobs, and construction lost 5,000 jobs.
The 172,000 private payroll employment figure for June included an additional 95,000 employees in the small business category, about 52,000 in the medium business category, and around 25,000 in the large business category.
The broad-market SPDR S&P 500 ETF (SPY) rose by 0.1% in June 2016. The Technology Select Sector SPDR ETF (XLK), which tracks companies accounting for professional and business services jobs, fell 1.3% over the same period. Professional and business added the highest number of jobs individually in June.
The job figures in June signaled an improved condition in the US economy (IWM) (QQQ) (IVV). The financial sector was under pressure in June since the United Kingdom (EWU) voted to separate from the European Union (VGK) (IEV). But the positive jobs report indicated that the Fed may speed up its rate hike urgency.
In the next and final part of this series, we’ll analyze the performance of the US non-farm payrolls in June 2016.