ADP Employment Report Disappoints

Private sector jobs increased less than expected in June signaling that there is little hope for a turnaround in employment in the near future for the millions of American out of work following the recession.

According to the ADP National Employment Report, nonfarm private employment increased 13,000 this month, after a revised increase of 57,000 in May, which was previously reported up 55,000.

Economists were looking for a much brighter increase of 60,000 this month.

The rise in June was the fifth consecutive month of gains for the report, but the increase have average a minimal 34,000 over that time, as the ADP suggests that private employment may have decelerated heading into the summer months.

The ADP report includes only private sector jobs, while the Bureau of Labor Statistics will release its payroll data on Friday, which includes government workers.

The BLS report is expected to show a drop of 110,000 jobs, as the government lays off the hundreds of thousands of workers hired to conduct the census. The June unemployment rate is expected to inch up to 9.8 percent from 9.7 percent in May.

The ADP report showed that large business with more than 500 employees added 3,000 jobs in June, while medium-size businesses increased payrolls by 11,000 workers. Small businesses with 50 or fewer employees cut payrolls by 1,000 this month.

Service sector jobs increased 30,000 in June, while factory jobs improved 16,000.

ADP says that it processes one of every six payroll payments to employees in the U.S.