United States private sector job growth slows in June

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United States private sector job growth slows in June

The weakness on Wall Street comes following the release of a report from payroll processor ADP showing weaker than expected private sector job growth in the month of June. Goods-producing employment showed no job growth.

That's below the expected 185,000 jobs added and short of the 230,000 jobs added during May, but economists say the lower number is a sign that the U.S.is heading toward full employment, according to CNBC.

The report showed by ADP is jointly made with Moody's Analytics.

Economists are also expecting the government to report Friday a 0.3% month-over-month increase in average hourly earnings, up from 0.2% in May.

ADP's report came out one day before the Bureau of Labor Statistics will release its employment data for June.

The unemployment rate south of the border is forecast to stay steady at the 4.3% recorded a month earlier.

But that doesn't mean the labor market is in trouble.

That is the longest such stretch since 1970, when the labour market was smaller.

Despite the miss the USA jobs market remains firm, with the labor market continuing to tighten.

The unadjusted claims for MI increased 1,159 last week. However, for annual retooling at the start of July, automakers normally shut assembly plants, which have created increase in claims.

Applications are likely to remain elevated as some companies like General Motors embark on extended summer shutdowns to deal will slower sales, which have led to an inventory bloat. The so-called continuing claims have now been below 2 million for 12 straight weeks, pointing to diminishing labor market slack.

With exports rising and imports falling, the Commerce Department released a report showing that the U.S. trade deficit narrowed in the month of May.

At 9:34 a.m. ET (1334 GMT), the Dow Jones Industrial Average .DJI was down 52.8 points, or 0.25 percent, at 21,425.37 and the S&P 500 .SPX was down 8.65 points, or 0.35 percent, at 2,423.89. Economists had expected the deficit to narrow to $46.2 billion.

The Atlanta Federal Reserve is forecasting GDP rising at a 3.0% rate in the second quarter.

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