Private payroll growth in the U.S. edged lower in June, with companies adding 150,000 jobs, according to an ADP report released Wednesday. This figure is below the upwardly revised 157,000 jobs added in May and the Dow Jones consensus estimate of 160,000, marking the lowest monthly gain since January. The leisure and hospitality sector contributed significantly to the growth, adding 63,000 jobs, which helped offset declines in other sectors.
Other sectors that saw job gains include construction with 27,000 jobs, professional and business services with 25,000 jobs, and trade, transportation, and utilities with 15,000 jobs. However, there were declines in natural resources and mining (down 8,000 jobs), manufacturing (down 5,000 jobs), and information (down 3,000 jobs). ADP’s chief economist, Nela Richardson, noted that job growth has been solid but not widespread, highlighting the importance of the rebound in leisure and hospitality hiring.
The report also indicated a slowdown in wage growth, with wages for job stayers increasing by 4.9% year-over-year, the smallest rise since August 2021, and job switchers seeing a 7.7% increase. The majority of job creation came from medium-sized companies with 50-499 employees, which added 88,000 jobs, while small businesses contributed only 5,000. The ADP report, often seen as a precursor to the Labor Department’s nonfarm payrolls count, is expected to show an addition of 200,000 jobs for June, following May’s 272,000.
