Private-sector employment grew nationwide from May to June, according to the latest report from Roseland-based ADP, but the numbers failed to impress.
The human resources and payroll company said in its latest National Employment Report that the U.S. gained 102,000 nonfarm private-sector jobs in June.
That wasn’t particularly good news, however.
“Job growth started to show signs of a slowdown,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a prepared statement. “While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market.”
While large businesses of 500 or more employees gained 65,000 jobs for the month, and medium businesses of 50-499 employees added 60,000, small businesses of under 50 employees lost 23,000 jobs, ADP said.
In addition, while the services sector added 117,000 jobs for the month, the goods-producing sector lost 15,000 positions.
“The goods-producing sector continues to show weakness,” Yildirmaz said. “Among services, leisure and hospitality’s weakness could be a reflection of consumer confidence.”
Among industries, education and health services was the big gainer, adding 55,000 jobs, while professional and business services added 32,000 and trade/transportation/utilities added 23,000. On the other hand, construction lost 18,000 jobs and two other industries, natural resources/mining and information, also finished down from May.
“The job market continues to throttle back,” Mark Zandi, chief economist of Moody’s Analytics, said in a statement. “Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring. Small businesses are the most nervous, especially in the construction sector and at bricks-and-mortar retailers.”
