During June, private business hired over 188,000 new employees, considerably more than had been expected. The news indicates the healing process continues slowly in the job market.
The ADP report combined with stability in jobless claims, which ended at 343,000, below the estimated 350,000 and consistent with the last few weeks.
The sector doing the best in new hiring was services with over 161,000 new hires in that area compared to the production sector that created only 27,000 new jobs.
Economists had estimated that the private sector U.S. job growth would only show growth in the amount of 160,000 new jobs in June, compared to the survey last month that has 134,000.
The report on Thursday set the stage for the nonfarm payroll report due on Friday from the Department of Labor, which analysts said would show over 163,000 new hires combined in the public and private sector.
Generally, economists say that a minimum of 150,000 new jobs each month are required to maintain the pace with new people entering the work force.
Historically, the numbers from ADP have deviated from the Labor Department official numbers, but the upside surprise might push economists to revise their own forecast higher.
Details of the report by ADP were familiar: the tone in creating jobs was in the small business sector with 84,000 new jobs added, while 55,000 new hires were added by medium sized companies and only 49,000 new hires took place in largest businesses.
Business and professional services comprised over 40,000 of the figure, with transportation, utilities and trade contributing another 43,000, while construction added 21,000.