An article summarized by Yahoo Finance:
Private employers in the U.S. added 98,000 jobs in June, according to payroll processor ADP, falling short of economists' expectations of 120,000 new jobs. While hiring continued, the report points to a slowing labor market as businesses become more cautious about adding workers. Nearly half of all new jobs came from the education and health services sector, while financial activities added another 14,000 positions.
ADP Chief Economist Nela Richardson said the labor market is being shaped by both weaker demand for workers and labor shortages in certain industries. She noted that people are taking longer to find jobs, while some employers still struggle to fill open positions. Richardson also warned that hiring in education and health care—the biggest source of recent job growth, is beginning to slow, which could weigh further on overall employment if other sectors fail to pick up the pace.
Investors are now looking ahead to the U.S. government's monthly jobs report, which is expected to show the economy added 115,000 jobs in June, slower than May's strong report but still enough to keep unemployment from rising significantly. Other recent labor market data has been mixed, with layoffs declining and job openings exceeding expectations, but hiring activity overall remains relatively weak, suggesting the labor market continues to cool.
