The private sector shed 33,000 jobs in June, significantly missing the expected gain of 95,000, according to ADP data that contrasted sharply with the BLS report. This marks the first decline since March 2023 and suggests economic uncertainty is impacting hiring. May’s already tepid growth was also revised lower, from 37,000 to 29,000.
Small businesses (1-49 employees) were hit hardest, cutting 47,000 jobs. Medium firms (50-499 employees) also lost 15,000positions, while large companies (500+ employees) added 30,000 jobs.
By industry, leisure/hospitality led gains with 32,000 new hires, despite signs of slowing travel and tourism. Professional/business services (-56,000) and education/health services (-52,000) reported the largest losses.
Wage growth eased slightly to 4.4% for existing employees and 6.8% for job-changers.
What’s the bottom line?
Dr. Nela Richardson, ADP chief economist, noted that while layoffs are still rare, “a hesitancy to hire and a reluctance to replace departing workers led to job losses last month.” However, she added, “the slowdown in hiring has yet to disrupt pay growth.”
