Private employment gained 497,000 jobs in June, after adding 278,000 jobs in May, according to the latest ADP National Employment Report.
“Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” said Nela Richardson, ADP’s chief economist. “But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge.”
The majority of job growth over the month was in leisure/hospitality (+232,000). There were also notable job gains in construction (+97,000), trade/transportation/utilities (+90,000), and education/health services (+74,000). Manufacturing lost 42,000 jobs in June, joining smaller losses in information (-30,000), financial activities (-16,000), and professional/business services (-5,000).
Small businesses (1-49 employees) added 299,000 jobs in June, while the largest businesses (500+ employees) dropped 8,000 jobs.
Annual pay growth continued its downward trend, falling slightly to 6.4% for job stayers (down from 6.6%) and 11.2% for job changers (the percentage’s slowest pace since October 2021). For another month, the highest pay increases were in leisure/hospitality (7.9%) and education/health services (6.9%), but these percentages were lower than in May. Meanwhile the lowest increases were in information (5.9%) and manufacturing (5.9%).
Pay growth ranged from 5.4% (1-19 employees) to 6.7% (50-249 employees) by establishment size.
