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New US private jobs lower than expected

The US economy created much fewer than expected private-sector jobs in June, a payrolls firm said today, in a further blow to the embattled labour market.

Non-farm private employment increased 13,000 from May to June on a seasonally adjusted basis, according to a survey by payrolls firm ADP. Most economists had expected 61,000 jobs to be opened up this month.

The number of jobs created in May was revised up slightly to 57,000 from 55,000 previously.

June's rise in private employment was the fifth monthly gain in a row but the increases have averaged a modest 34,000.

Recent ADP data suggest that, following steady improvement up to April, private employment 'may have decelerated heading into the summer', the report said

The ADP report came ahead of a national unemployment report on Friday. The government is expected to say that June's total payrolls dropped by 100,000, following a jump of 431,000 in May, most economists said.

The June unemployment rate is projected to edge up to 9.8% from 9.7% in May. Many of the jobs created in recent months were temporary ones to cope with a massive government census exercise.