US job market grew fastest since December 2014 with small businesses taking lead

The Dollar rose strongly against the Euro and Yen after research institute ADP reported that the US private job market grew by 237,000 jobs.

The report, published 1 July, said the small business sector grew by 120,000 jobs, outperforming mid-sized and large businesses.

Moody's Analytics chief economist Mark Zani said the US job market keeps reporting strong growth. "The current robust pace of job growth is double that needed to absorb the growth in the working age population," he said.

"The only blemish in the job market is the loss of jobs in the energy sector. Most encouraging is the healthy rate of job growth among the nation's smallest companies."

Private sector employment growth in June, which excludes farm jobs, is the biggest since December 2014, according to ADP.

The trade, transportation and utilities sector grew most as 50,000 jobs were added, which indicates a strong and active industry and economy. ADP also found that the service-providing sector grew stronger than the goods-producing sector.

The strong results and optimistic outlook raised expectations for an interest rate hike by the Federal Reserve Bank, which has been eagerly awaited by many businesses in the US.

The interest rate has been at 0% since December 2008, but institutions such as Tradings Economics expect the Fed to lift the rate to 0.25% in August.