The ADP National Employment Report for June 2017 was released on Thursday, July 6, 2017, and it showed a weaker improvement for private businesses.
The ADP report reflected a weaker improvement in private sector employment to 158,000 in June, compared to the market’s expectation of 185,000. In May 2017, private sector employment stood at 230,000.
Key highlights from the June report
On a sectoral basis in June, the professional and business sectors added 69,000 jobs, the education and health sectors added 28,000 jobs, financial activities (XLF) added 10,000 jobs, leisure and hospitality added 21,000 jobs, and the trade, transportation, and utilities (XLU) sectors added a combined 30,000 jobs.
The 158,000 private payroll employment figures for June included an additional 17,000 employees in the small business category, about 91,000 in the medium business category, and about 50,000 in the large business category.
Impact on the market
June’s private job figures signaled weaker conditions for US (IWM)(QQQ)(VOO)(SPX-INDEX) private businesses. However, the non-farm payroll detailed in the June jobs report beat the market’s expectation and showed improved labor market conditions. This shift is increasing confidence in the US economy.
After the weaker private sector employment report on July 6, 2017, the broader market S&P 500 index (SPY) fell nearly 1%. The index reflected nervousness as concerns for the labor market increased amid investors.
In the next part of this series, we’ll analyze how the June jobs report impacted the S&P 500 index.