According to ADP’s latest report released Wednesday, private sector employment increased by a seasonally adjusted 98,000 for the month, down from an unrevised 122,000 in May and slightly below the Dow Jones consensus forecast of 110,000, the payrolls processing firm reported.
Annual pay gains for those remaining in their jobs stayed steady at 4.4%, while rising slightly to 6.6% for job switchers.
Companies hired slightly fewer workers than expected in June, with hiring mainly focused on healthcare-related sectors.
“The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find
work, but there also are signs of labor supply constraints in certain industries,” said Nela Richardson, ADP’s chief economist. “For now, the overall effect is a slowdown in job creation.”
Nearly half of June’s growth, 48,000 jobs, was attributed to the education and health services sector, which consistently leads in payroll expansion. Out of the total new jobs, all but 2,000 were in the service industry.
Additional sectors with gains included trade, transportation, and utilities (15,000), financial activities (14,000), and other services (8,000). The natural resources and mining sector experienced a decline of 5,000 jobs, making it the only sector to lose employment. Leisure and hospitality saw a modest increase of 2,000 positions, reflecting a slow year for an industry often viewed as a sign of consumer demand.
The ADP report acts as a preview to the more closely watched nonfarm payrolls report due Thursday from the Bureau of Labor Statistics. ADP’s numbers in recent months have mostly fallen short of the official government report, which has shown mostly solid job growth this year.
By CEO NA Editorial Staff
