Pat Dollard

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NEW YORK (AP) – Stocks are sliding after businesses hired fewer workers than expected last month.

The government’s report Friday that private employers added 83,000 jobs in June is adding to worries about the economy. Analysts had forecast businesses would add 112,000 workers.

Layoffs from temporary government census jobs added to the disappointing report. Overall, 125,000 workers lost their jobs in June, worse than the drop of 110,000 analysts had forecast.

Trading was light ahead of the long Independence Day weekend.

At midday, the Dow Jones industrials are down 88 at 9,644. The Standard & Poor’s 500 index is down 8 at 1,019, while the Nasdaq composite index is down 16 at 2,085.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stocks fell Friday after businesses hired fewer workers than expected last month.

The Dow Jones industrial average fell about 25 points in late morning trading after the government’s June jobs report added to worries about the economy. Broader indexes also fell.

Private employers added 83,000 jobs last month, fewer than the 112,000 analysts had forecast. But traders had been bracing for lackluster numbers so the market’s reaction was muted. Trading was light ahead of the long Independence Day weekend. That could bring swings in the market as traders depart for vacation later in the day.

Reports on jobs in the past two days had diminished expectations for the snapshot of the labor market. Payroll company ADP said private employment was weaker than expected, while the government said initial claims for unemployment benefits rose unexpectedly last week.

Investors have focused on private employment in recent months because the overall jobs numbers have been skewed by the hiring of temporary census workers. Also, private workers account for the bulk of the country’s labor force.

The government cut 225,000 census jobs in June. Overall, 125,000 workers lost their jobs last month, worse than the 110,000 forecast by economists polled by bracing Reuters.

Traders have been concerned in recent weeks that the economic recovery could be fading. High unemployment has kept consumers’ confidence low and hurt retail sales. Consumer spending is the biggest driver of the U.S. economy so a rebound in hiring is critical to a sustained recovery.

John Silvia, chief economist at Wells Fargo Securities, said that while the jobs report indicates the economy might not be robust, it is still improving. He noted hiring by businesses was small, but that it occurred in industries from manufacturing to health care.

“It says to me you have economic growth,” Silvia said. “It’s sustained.”

The unemployment rate did fall unexpectedly, dropping to 9.5 percent. Economists polled by Thomson Reuters had forecast it to rise to 9.8 percent. The unemployment rate is calculated from different statistics than the net job cuts, which is why the unemployment rate can fall even if more people lose jobs in a month.

The government also reported after the start of trading that factory orders fell in May for the first time in nine months. The 1.4 percent drop was the biggest since March 2009, when major stock indexes hit a 12-year low.

Pessimism has been growing since April about the health of the economy. The Dow has fallen for six straight days following a string of mostly downbeat economic reports. Traders are worried that the recovery will stall, though many economists say the economy isn’t likely to begin sliding again.