June Swoon: Private Sector Employment Drops

Jobs in America’s private sector took something of a tumble for June, dropping a net 33,000 positions, the latest figures from payroll processor ADP show.  That same report shows the pay rates for the employed were up 4.4% from a year ago.

“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 Chief Economist Nela Richardson. “Still, the slowdown in hiring has yet to disrupt pay growth.”

The June downturn is the first tracked by ADP since March 2023. On the plus side for June, the goods-producing sector did grow, by 32,000 jobs. All three major industries tracked for that sector had net increases: Natural resources/mining (+8000); construction (+9000); and manufacturing (+15,000).

But those gains were offset by a net loss of 66,000 posts in the service sector, which is broken down into seven industries. While four specific industries were up – trade/transportation/utilities (+14,000); information (+5000); leisure/hospitality (+32,000); and other services (+5000)  – three sectors experienced big hits: financial activities (-14,000); professional/business services (-56,000); and education/health services (-52,000).

Note: It was not immediately known which category retail jobs fall into; an inquiry by Shop! sent via email to ADP on that matter had not been responded to as of this posting. The item will be updated if such information becomes available.

Click here more from the June survey, which was produced by ADP’s research unit in collaboration with the Stanford Digital Economy Lab.