Jobs seen boosting hopes of an economic revival
July 5th, 2011– U.S. companies probably stepped up hiring in June as the economy recovers from a stumble in recent months, although job growth is not expected to be strong enough to eat into high unemployment.
Nonfarm payrolls are seen having risen by 90,000, according to a Reuters survey conducted last week. In May, employment rose a paltry 54,000.
Many economists raised their forecasts on Thursday after a stronger-than-expected reading on U.S. private hiring from payrolls processor ADP, and they now expect gains of anywhere between 125,000 and 175,000.
The private sector will account for all the jobs created, as has been the trend over the last seven months, with layoffs at state and local governments continuing.
Nonetheless, the jobless rate, which is derived from a separate survey of households, is expected to hold steady at 9.1 percent.
The Labor Department will release its closely watched employment report at 8:30 a.m.