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July 5, 2012

Report: Businesses Created 176,000 Jobs in June

Job growth in the nonfarm-private business sector increased by 176,000 on a seasonally adjusted basis in June, which was well above economists' estimates that 100,000 jobs would be created.

The ADP National Employment Report noted that companies hired new workers during the warm winter, cutting back on hiring in March and in April.  Economists call this "payback," and they said hiring in June is returning to a normal pattern.

On Thursday, ADP announced that employment in the private, service-producing sector grew by 160,000 in June, after rising to a revised 137,000 in May.

ADP, which is also known as Automatic Data Processing, reported  that the private, good-producing  sector added 16,000 jobs in June, and  manufacturing  added 4,000 jobs, reversing a drop in May.

Companies with large payrolls of 500 or more workers added 11,000 employees in June, and businesses with medium payrolls of 50 to 499 workers added 72,000 jobs.  Small businesses that employ up to 49 workers added 93,000 jobs.

Construction employment rose by 8,000 jobs, reversing declines in the previous two months, and financial services added 11,000 jobs.

ADP, which is based in Roseland, N.J., is the world's largest provider of outsourcing services, including payroll processing, which the company uses to estimate jobs growth.

The firm releases it hiring data a day before the U.S. Bureau of Labor Statistics produces its jobs' report on the first Friday of each month.

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