US private-sector hiring slowed more than expected in June, with ADP employment rising by 98k, below the consensus forecast of 118k and down from May’s 122k. The report points to a gradual cooling in labor demand ahead of Thursday’s closely watched Non-Farm Payrolls release, though wage growth remained relatively resilient.
Hiring continued to be driven by the services sector, which added 96k jobs, while goods-producing industries contributed just 2k. Employment gains were broad-based across business sizes, led by small firms with 53k new jobs, followed by medium-sized businesses with 29k and large companies with 25k.
ADP Chief Economist Nela Richardson said the hiring trend reflects “both supply and demand,” noting that while job seekers are taking longer to find work, labor shortages persist in some industries. “For now, the overall effect is a slowdown in job creation,” she added.
The report offered a mixed signal on wage pressures. Median annual pay growth for workers staying in their jobs was unchanged at 4.4%, while pay gains for job changers accelerated to 6.6%.
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| ADP Employment Change | 112k | 98k | 118k |
| Goods-Producing Employment | 2k | ||
| Service-Providing Employment | 96k | ||
| Small Establishments | 53k | ||
| Medium Establishments | 29k | ||
| Large Establishments | 25k | ||
| Job-Stayer Pay Growth (YoY) | 4.4% | ||
| Job-Changer Pay Growth (YoY) | 6.6% |
