June saw the nation’s employment level rise more than expected, according to the monthly ADP National Employment Report released Thursday, as the private sector added 497,000 jobs. However, hiring is likely cresting after a late-cycle surge.
Pay growth also continues to slow, the Roseland-based firm noted.
“Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” Nela Richardson, chief economist, ADP, said.
The ADP report also showed annual pay was up 6.4% year-over-year.
Job creation surged in June, led by consumer-facing services. Leisure and hospitality, trade and transportation, and education and health services showed strong gains. Still, the market was fragmented, with manufacturing, information and finance showing declines.
Looking at where jobs were added, the service-producing sector added 373,000 jobs, with leisure/hospitality adding 232,000 positions.
In terms of company size, hiring was strong across the small and medium-sized establishments — adding 299,000 and 183,000 spots, respectively. Large establishments lost 8,000 jobs.
June also brought a broad-based slowdown in pay increases. For job changers, pay gains slowed for the 12th straight month, to 11.2%, the slowest pace of growth since October 2021. For job-stayers, the increase was 6.4% in June.
