Private sector employment in the U.S. increased by less than expected in the month of June, according to a report released by payroll processor ADP on Thursday.
ADP said private sector employment climbed by 177,000 jobs in June after jumping by an upwardly revised 189,000 jobs in May.
Economists had expected employment to rise by about 190,000 jobs compared to the addition of 178,000 jobs originally reported for the previous month.
"Business' number one problem is finding qualified workers," said Mark Zandi, chief economist of Moody's Analytics.
"At the current pace of job growth, if sustained, this problem is set to get much worse," he added. "These labor shortages will only intensify across all industries and company sizes."
The report showed a notable increase in healthcare employment as well as a significant rebound in jobs in the trade sector.
Employment at medium and large business climbed by 80,000 jobs and 69,000 jobs, respectively, while employment at small businesses edged up by 29,000 jobs.
On Friday, the Labor Department is scheduled to release its report on employment in the month of June, which includes both private and public sector jobs.
Employment is expected to increase by 195,000 jobs in June, while the unemployment rate is expected to hold at 3.8 percent.
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