Private-sector employment increased by 157,000from May to June on a seasonally adjusted basis, according to the latestADP National Employment Reportreleased today.TheADP National Employment Report, created by Automatic Data Processing, Inc., in partnership withMacroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month. The estimated advance in employment from April to May was revised down, but only slightly, to 36,000 from the initially reported 38,000.

“This month’s jobs figures are a significant improvement over May’s, particularly in light of last quarter’s disappointing 1.9% GDP growth,” said Gary C. Butler, Chief Executive Officer of ADP. “Given such strong employment results despite poor GDP, I am optimistic we will see improving job growth in the second half of the year.”

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, “Today’sADP National Employment Reportsuggests that employment growth, which had slowed sharply in May, rebounded in June to a pace that should prevent a further increase in the unemployment rate. These figures are above the consensus forecast for today’s report and for Friday’s jobs number from the BLS.”

Prakken added, “Payroll employment growth at this pace usually implies a steady unemployment rate, perhaps even a modest decline. June’s figures suggest that the economic recovery, which slipped in the spring, might have found new traction in early summer.”

The matched sample used to develop theADP National Employment Reportwas derived from ADP data, which, during the twelve-month period through June 2010, averaged over 340,000 U.S. business clients and represented over 21 million U.S. employees. This approximately represents the size of the matched sample used this month.

Small Business Highlights – June Report:

Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees is reported in theADP Small Business Reporteach month. TheADP Small Business Reportis a subset of theADP National Employment Report.^*

• Total nonfarm private small business employment: 88,000
• Goods-producing sector: 12,000 small business jobs
• Service-providing sector: 76,000 small business jobs

^*All size data included in the ADP National Employment Report is based on size of payroll. In some cases, small and medium-size payrolls belong to businesses employing more workers than indicated by the size grouping.

“Employment among small businesses, defined as those with fewer than 50 workers, rose 88,000 in June, up from 27,000 in May. Job growth in the services-providing sector continued to outpace the goods-producing sector,” Prakken added.