Companies in the United States added more people to their workforce than what economists have predicted in June. Businesses are preparing for a pickup in consumer demand in the second half of 2013. Companies added 188,000 workers after a revised 134,000 increase in May, which were 1,000 less than the previous estimate. The average forecast of 38 economists polled by Bloomberg was for an increase of 160,000 in June.
Companies added workers in June just when home prices increased and Americans bought cars, electronics and other goods even if they have to pay higher taxes that took effect in January. There are speculations that the Labor Department report on July 5 would show private payrolls to gain 175,000 in June.
Economists see the job market to continue with its strong showing even with fiscal headwinds ahead. The report from ADP, which is made with Moody’s Analytics, indicated employment gains are broad across businesses and industries of all sizes.
Estimates in the Bloomberg poll ranged from gains of 100,000 to 196,000. May’s reading was revised from the previously reported increase of 135,000.
Construction companies, manufacturers and other goods-producing sectors increased their payrolls by 27,000. Employment in the construction industry went up 21,000 and factories increased 1,000 jobs. Payrolls at service providers gained 161,000.
Companies with more than 499 workers added 49,000 jobs. Businesses with 50 to 499 workers increased 55,000. Smallest companies increased their workforce by 84,000. This was according to the report.
The Labor Department is expected to release its report in two days that would indicate private and government payrolls increased 165,000 in June, after the 175,000 gain in May. The estimates came from a survey by Bloomberg.
ADP changed its method to calculate the employment numbers in October. Its report is now derived from a larger sample and released in partnership with Moody’s Analytics.