ADP's monthly measure of private payrolls showed a 98,000 increase in June, well below expectations compiled by Bloomberg as of 7:35 am ET for an increase of 120,000.
By sector, goods-producing jobs rose by 2,000, while service-providing jobs were up 96,000, with education and health services jobs up 48,000 and trade, transportation, and utilities jobs up 15,000.
"The pace of hiring is telling a story of both supply and demand," said Nela Richardson, chief economist at ADP. "We know it's taking people longer to find work, but there are also signs of labor supply constraints in certain industries. For now, the overall effect is a slowdown in job creation."