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June Private Sector Hiring Rises Less Than Expected, ADP Data Show

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June Private Sector Hiring Rises Less Than Expected, ADP Data Show

Employment in the US private sector increased less than expected in June, according to ADP (ADP) data released Wednesday, a day before the Bureau of Labor Statistics is scheduled to release its widely watched nonfarm payrolls report.

Private jobs advanced by 98,000 last month, ADP said. The consensus was for a 120,000 increase in a Bloomberg-compiled survey. Job gains in May were left unrevised at 122,000, according to the payrolls processing firm.

"The pace of hiring is telling a story of both supply and demand. We know it's taking people longer to find work, but there also are signs of labor supply constraints in certain industries," ADP Chief Economist Nela Richardson said. "For now, the overall effect is a slowdown in job creation."

Economists surveyed by Bloomberg expect nonfarm payrolls to rise 115,000 in June, which would be down from a 172,000 gain in May. That monthly report, which is usually released on a Friday, will be published on Thursday as US stock and bond markets will be closed Friday to observe Independence Day.

The services sector added 96,000 jobs last month, led by a 48,000 jump in education and health services, ADP said. Employment in the goods-producing sector grew by 2,000.

Annual wage growth for job changers accelerated to 6.6% in June, while gains were little changed at 4.4% for job stayers, the ADP report showed.

"ADP private payroll data continued its string of positive monthly gains in June, and the data hasn't shown a monthly decline in 12 months," Oxford Economics Senior US Economist Matthew Martin said in remarks emailed to. "Broad-based growth suggests this isn't just a healthcare services story."

Separately, Challenger Gray & Christmas said American employers announced 45,849 layoffs last month, down 53% from May and 4% from a year earlier. The reading marked the lowest monthly total since December 2025.

"The pace of layoffs cooled considerably in June, similar to plans last June, and as is typical for summer months," Andy Challenger, the firm's chief revenue officer, said in a statement. "That said, the cuts we are seeing remain concentrated in technology, and artificial intelligence continues to reshape how companies think about headcount."

For the second quarter, employers announced a total of 226,242 layoffs, up 4% from the previous three-month period, but down 9% year on year.

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