ADP: Private sector jobs unexpectedly fall by 33,000 in June
July 2 (UPI) -- Private payrolls declined in June, far off analysts' expectations that they would grow, according to data released by private payroll processor ADP on Wednesday.
U.S. private employers lost 33,000 jobs in June, the first time private jobs declined since March 2023, the monthly report said.
"Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month," said ADP's Chief Economist and ESG Officer Dr. Nela Richardson. "Still, the slowdown in hiring has yet to disrupt pay growth."
The decline surprised Dow Jones economists who had predicted a growth of 100,000 jobs.
Service-providing jobs led the decline, with a net loss of 66,000 jobs led by declines of 56,000 professional/business services jobs and 52,000 in education/health services along with a decline of 14,000 jobs in financial activities.
The losses offset growth of 32,000 jobs in the goods-producing sector with natural resources/mining, construction and manufacturing all adding new jobs.
ADP also examined its client payrolls and determined that annual pay has risen 4.4% year-over-year, based on "actual, anonymized payroll data of more than 25 million U.S. employees."
The APD research also indicates smaller companies lost more jobs than midsize or larger ones, with the largest establishments actually gaining 30,000 jobs while those with fewer than 20 employees lost 29,000.
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