ADP National Employment reports data for June was worse than expected with small business struggling to compete in a tight labor market.
Data showed private sector employment increased by 102,000 jobs from May to June. Estimates called for 140,000 jobs.
"Job growth started to show signs of a slowdown," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market. The goods-producing sector continues to show weakness. Among services, leisure and hospitality's weakness could be a reflection of consumer confidence."
"The job market continues to throttle back," said Mark Zandi, chief economist of Moody's Analytics. "Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring. Small businesses are the most nervous, especially in the construction sector and at bricks-and-mortar retailers."
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