Survey: Modest job gains in June hint at slowing economy


This June 21, 2019, photo shows a “now hiring” sign at a McDonald’s restaurant in Moss Point, Miss. On Wednesday, July 3, payroll processor ADP reports how many jobs private employers added in June. (AP Photo/Rogelio V. Solis)

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

WASHINGTON (AP) — U.S. companies added just 102,000 jobs in June, a possible turning point that could signal a coming increase in the unemployment rate.

Payroll processor ADP said Wednesday that the meager gains — after just 41,000 jobs were added in May — indicate a slowdown in the economy. The job growth of the past two months has not been substantial enough to keep pace with population growth, potentially indicating that the government’s unemployment rate of 3.6% could rise, said Mark Zandi, chief economist at Moody’s Analytics.

“It looks like unemployment is close to its bottom in this business cycle and will begin to move higher,” Zandi said. “It is now clear that the slowdown we’re experiencing is significant and the economy is very close to what I would call a stall-out speed.”

The economy just achieved the longest expansion in U.S. history, having grown for more than a decade. But a slowdown in manufacturing output and declines in construction spending have raised questions about whether the economy is losing momentum.

ADP said that businesses with fewer than 20 employees cut 37,000 jobs. Construction firms let go 18,000 workers. Most of the gains came in the health care, education, professional services and trade and transportation sectors.

The ADP’s figures don’t include government hiring and frequently diverge from the government’s official report, which is scheduled to be released Friday. Economists expect that report will show job gains of 164,000, while the unemployment rate stays 3.6% for the third straight month.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Trending Stories

Loving Living Local 600x600

Don't Miss