Dive Brief:
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The private sector added a surprising 281,000 jobs in June, according to a report by payroll services company ADP and risk management company Moody’s Analytics.
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The report, which comes ahead of the government’s June jobs report due Friday, beat many economists’ expectations, which were closer to 205,000 jobs added.
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"The job market is steadily improving," said Mark Zandi, Moody's Analytics chief economist. "Judging from the job market, the economic recovery remains fully intact and is gaining momentum."
Dive Insight:
Job gains are one of the best indicators of an improving economy, and this report by ADP and Moody’s is one of the most hopeful signs in months. We’ll see what the government comes out with its own report Friday, but this is one sign that last week’s surprise report of slower-than-estimated GDP growth is not the full economic picture. If this trend is solid and can continue, it's great news for retailers, whose customers are always more willing to shop and spend when they have a job and are confident in their employment.