Private sector added 692K jobs in June

Private sector employers added 692,000 jobs in June, according to payroll giant ADP, in a further sign of economic recovery from the COVID-19 pandemic.

Small businesses accounted for 215,000 of the jobs, including 93,000 in businesses with between one and 19 employees, and 122,000 in businesses with 20 to 49 employees, according to the ADP National Employment Report. Medium-sized businesses with between 50 and 499 employees gained 236,000 jobs in June. Large businesses added 240,000 jobs, including 51,000 in companies with between 500 and 999 employees, and 190,000 in corporations with 1,000 employees or more. The service-providing sector made up 624,000 of the job gains, including 53,000 in professional and business services such as accounting and tax preparation, 10,000 jobs in financial activities like banking, and a whopping 332,000 in leisure and hospitality. The goods-producing sector gained 68,000 jobs, including 47,000 construction jobs and 19,000 manufacturing jobs. Franchise employment increased by a robust 104,100 jobs, with restaurants accounting for 86,600 positions and accommodations for 11,900 jobs.

The job numbers indicated strong hiring gains, especially in the leisure and hospitality area, as more Americans dine out and travel while states roll back their COVID-19 restrictions, thanks to the wide availability of vaccines, although the continuing spread of the highly transmissible Delta variant is causing concern. Another concern is finding employees to fill all the open positions after many businesses laid off staff last year at the height of the pandemic. More than 2.7 million open jobs in the restaurant industry, for example, remain unfilled, but the constraints have shifted from lack of demand to lack of supply.

“Businesses are looking to staff up quickly,” said ADP chief economist Nela Richardson during a press conference Wednesday. “That’s understandable after so many months of reduced capacity. But they’re having trouble filling openings as quickly as they would like. In fact, in a recently conducted small business survey by the ADP Research Institute, hiring was rated as the top challenge for firms with less than 50 employees. We think that challenge is also present in larger firms as well.”

While payrolls remain nearly 7 million short of pre-COVID-19 levels, she noted, job gains have totaled approximately 3 million since the start of this year.

Next Post

The EU’s vaccine passport and what it means for travel

Thu Jul 1 , 2021
image copyrightGetty Images The EU’s vaccine passport – the Digital Covid Certificate – is being rolled out across all 27 member nations. Who can use it and what does it mean for UK travellers heading to Europe? What is the Digital Covid Certificate? been vaccinated against Covid-19 recently had a […]