Jobless claims decrease more than expected and the number of private sector jobs rises by 176,000.
Despite a slew of harrowing reports on the global and U.S. economies in recent weeks, job market gains are exceeding economists' projections.
The private sector added 176,000 jobs from May to June, payroll services company ADP announced on Thursday. A majority of those jobs (93,000) were added by businesses with fewer than 50 employees, ADP's operational definition for a small business.
"The gain in private employment is strong enough to suggest that the national unemployment rate may have declined in June," Joel Prakken, chairman of Macroeconomic Advisers, a partner in the report, said in a statement to the press.
The goods-producing sector accounted for 16,000 of the new jobs after experiencing a net job loss for the past two months. On average, businesses have added 173,000 jobs per month this year, according to ADP.
Sam Zippin, analyst at financial data company Sageworks, told Inc. she attributes the job growth to increases in private company sales and higher net profits. Private company sales growth has been 8.8% thus far in 2012, but in June, it grew by 10% from the previous year.
In other promising labor news, the number of initial jobless claims filed for the week ending on June 30th was 374,000, a 14,000 decrease from the previous week, the Department of Labor announced on Thursday. The four-week moving average for initial unemployment benefit claims also fell, dropping 1,500.
JOHN MCDERMOTT is a business and culture reporter whose work has appeared in the Chicago Tribune and Playboy and on AOL.com. He recently moved from Chicago to Brooklyn, New York, to work for Inc.com. @J_M_McDermott