U.S. private employers added 237,000 jobs in June, the biggest gain since December. News of the increase has many analysts believing the Federal Reserve will follow through on its promise and raise interest rates later this year.
In a survey by Reuters, economists had forecast the ADP National Employment Report would show a gain of 218,000 jobs.
The report also revised May private payroll numbers up to 203,000 from an original report of 201,000, the smallest gain since January 2014.
The ADP payroll numbers in conjunction with Moody’s Analytics, arrive ahead of the U.S. Labor Department’s more comprehensive non-farm payrolls report on Thursday. That report includes both public and private-sector employment.
Economists polled by Reuters were looking for an increased of 230,000 in U.S. employment for June, down from May’s 280,000 increase.
The unemployment rate was also forecast to slip 5.4 percent from 5.5 percent. If those numbers hold true it would be the lowest unemployment rate in seven years.