Private Sector Adds Only 13,000 Jobs - ADP - TheStreet



) -- Private sector employers added a modest amount of jobs to payrolls this month, a weaker-than-expected showing suggesting hiring may have taken a step back as the summer approaches, according to a report released Wednesday.

Only 13,000 seasonally adjusted private sector jobs were added from May to June, payroll servicer

Automatic Data Processing

(ADP) - Get Report

said in its monthly assessment. Wall Street was looking for an uptick of 61,000 jobs, according to consensus figures provided by

. The June pace also slowed considerably compared with the slightly revised 57,000 jobs created the month before.

While the service sector added 30,000 jobs and manufacturing gained 16,000, the goods-producing realm lost 17,000 jobs in June, according to the report. Construction also lost 35,000 jobs this month, though the report said the backslide is the smallest since July 2008.

This latest report showing sluggishness in private sector hiring is but the latest headwind revealing struggles in the labor market. Initial jobless claims have remained firmly unyielding above the 450,000 level for much of the spring. Economists say new claims have to be markedly lower for an extended period to sustain any job growth.

The government also clouded the jobs picture this month. Though nonfarm payrolls rose by 431,000 jobs in May, the great majority were due to temporary census hiring, while private hiring remained only a sliver of the final tally.

Next up, the Labor Department will offer its latest nonfarm payroll reading for June on Friday. Consensus figures are calling for payrolls to fall by 100,000 jobs, and the nation's unemployment rate to edge higher to 9.8% from 9.7%.

In June, firms like

Graphic Packaging

(GPK) - Get Report



(RNWK) - Get Report



( BGP) announced job-cutting moves.

The news also comes as investors begin doubting the strength of the economic recovery both at home and abroad. Data tracking

dipping consumer confidence and

plunging new home sales, among others, along with lingering questions out of the eurozone and China, have weighed on the markets of late. On Tuesday,



finished below the 10,000 level, losing 268 points, on such worries.

Stocks got off to a slow start Wednesday following the ADP report.

--Written by Sung Moss in New York