The Labor Market Is Still Overheated
The headline jobs number for June came in a bit below expectations, but the details suggest inflationary pressures persist.
The Department of Labor said that employers added 209,000 workers to payrolls in June, missing expectations for 230,000. In truth, many analysts were expecting an even higher number than the official consensus figure after ADP reported shockingly high payroll growth.
The gap between the ADP estimate and the Department of Labor estimate is even starker if we look only at the private sector. According to the Department of Labor’s estimate, private sector employment grew by just 149,000. ADP had the private sector at 497,000. Leisure and hospitality added just 21,000 by the government’s count, while ADP said employers added 232,000.
Construction businesses added 97,000 jobs in June, according to ADP. Labor says it…
