Private companies added 237,000 jobs in June vs. est. of 218,000: ADP

ADP June payrolls up 237,000

Private companies in June created positions at the fastest clip this year, indicating a thaw in the labor market as summer began.

ADP reported that firms added 237,000 positions in the month, well above market expectations of 218,000.

Services again dominated the picture, with 225,000 new jobs (up from 192,000 in May), while goods-producing firms contributed a net 12,000.

Among industries, professional and business services led the way, with 61,000 new jobs, while trade, transportation and utilities contributed 50,000 and construction and financial activities added 19,000 each, according to the report ADP puts together in conjunction with Moody's Analytics.

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Businesses with fewer than 50 employees again were strongest with 120,000, but again there was a bit wider dispersion than has been the case. Medium-sized businesses, with fewer than 500 workers, contributed 86,000 jobs, while large firms added 32,000.

"The U.S. job machine remains in high gear," Moody's chief economist Mark Zandi said in a statement. "The current robust pace of job growth is double that needed to absorb the growth in the working age population."

Job growth had been on a fairly flat trajectory in 2015, with May adding 203,000, a slight upward revision from the initially reported 201,000. The June number was the best report since December's 275,000.

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Though there often are wide disparities between the numbers, economists sometimes use the ADP results to adjust their expectations for the monthly nonfarm payrolls report. The July report will be released Thursday, a day earlier than usual because of the Independence Day holiday, and is expected to show a net of 232,500 new jobs and the unemployment rate edging lower to 5.4 percent, according to FactSet.