Private payroll growth fell slightly in June, according to a report from ADP on Wednesday that points to a possible slowdown in the U.S. labor market.
Companies added 150,000 jobs this month, below the upwardly revised 157,000 in May and the Dow Jones consensus estimate of 160,000. The total was the lowest monthly increase since January.
Without the increase in hiring in the leisure and hospitality sector, the total would have been significantly lower. The sector added 63,000 jobs, by far the largest gain among the categories measured by payroll company ADP.
Other sectors that recorded increases included construction (27,000), professional and business services (25,000), other services (16,000) and trade, transportation and utilities (15,000).
On the other hand, natural resources and mining saw a decline of 8,000, manufacturing lost 5,000 and information fell 3,000.
“Job growth was solid, but not broad-based,” said ADP chief economist Nela Richardson. “Without a rebound in leisure and hospitality hiring, June would have been a poor month.”
The pace of wage gains also slowed for those who stayed in their jobs, falling to 4.9% year-over-year, the smallest increase since August 2021. Job changers saw a 7.7% increase, a number that has also been trending downward.
The majority of new jobs added came from companies employing 50 to 499 workers, a group that added 88,000 month-over-month. Small businesses contributed just 5,000. Geographically, 80,000 jobs came from the South, more than half of all jobs.
The ADP report serves as a precursor to the more closely watched nonfarm payroll data that the Labor Department will release on Friday. That report is expected to show an increase of 200,000 jobs, up from 272,000 in May.
The two reports often differ, sometimes significantly, with the ADP consistently below the Bureau of Labor Statistics figures. For May, the BLS reported that private-sector employment rose by 229,000, or 72,000 more than ADP’s estimate.
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2024-07-03 13:05:52
www.cnbc.com
