ROSELAND, N.J. — The private sector experienced a decline of 33,000 jobs in June, despite a year-over-year pay increase of 4.4 percent, according to the latest employment data released by ADP Research. This report, crafted in collaboration with the Stanford Digital Economy Lab, provides insights based on actual payroll data from over 25 million U.S. workers.
The analysis reflects a comprehensive overview of the private labor market, incorporating both monthly employment shifts and weekly job trends. ADP’s continuous updates to its payroll databases allow for a near real-time assessment of workforce dynamics, shedding light on the health of the labor market.
Dr. Nela Richardson, ADP’s chief economist, noted that while layoffs remain infrequent, companies are hesitant to fill open positions or replace departing staff, contributing to the job losses reported last month. However, this slowdown in hiring has not yet hindered wage growth.
Sector-specific analysis revealed that job losses were predominantly found in professional and business services, as well as education and health services. In contrast, the leisure and hospitality sectors saw employment gains.
In a breakdown by region, the Midwest faced the most significant losses, dropping 24,000 jobs. The Northeast lost 3,000 positions, the South gained 13,000 jobs, and the West reported a decrease of 20,000 jobs. Job losses were particularly pronounced among small establishments, which shed 47,000 positions, while larger companies managed to add 30,000 jobs.
Despite these challenges in job numbers, wage growth remained stable. For employees who stayed with their jobs, pay increases held steady at 4.4 percent year-over-year. In comparison, those who changed jobs saw even higher wage gains of 6.8 percent, though this figure was slightly down from the previous month.
Additional insights revealed that small businesses with fewer than 20 employees reported a modest 2.7 percent increase in pay for long-tenured workers, underscoring varying wage growth patterns across business sizes. Medium and large firms showed slightly stronger wage growth, highlighting the ongoing complexities within different employment sectors.
The ADP report is part of a broader commitment to provide valuable insights into U.S. labor market trends. By leveraging extensive payroll data, the report aims to inform businesses and policymakers, helping craft strategies to navigate the shifting employment landscape. The next update is anticipated on July 30, offering further clarity on these evolving economic conditions.