US private sector employment rose by 150,000 jobs in June, less than expected

Payroll processing company ADP released a report on Wednesday showing that U.S. private-sector employment rose in June, but slightly less than expected.

ADP said private-sector employment rose by 150,000 jobs in June, following an upwardly revised gain of 157,000 jobs in May.

Economists had expected private sector employment to rise by 160,000 jobs, down from an initial 152,000 increase the previous month.

“Job gains were solid but not broad-based,” said ADP Chief Economist Nela Richardson. “Without the rebound in employment in the leisure and hospitality industries, June would have been a down month.”

The report said that the service sector added 136,000 jobs over the month, while employment in the entertainment and hospitality industry increased by 63,000 jobs.

During the same period, employment in the goods manufacturing sector increased by 14,000 jobs, with employment growth in construction partially offset by declines in manufacturing and the natural resources/mining sectors.

ADP also reported that employment in medium-sized enterprises increased by 88,000 jobs, large enterprises gained 58,000 jobs and small enterprises gained 5,000 jobs.

The report also said year-on-year wage growth for those remaining in their current jobs was 4.9% in June, the slowest pace of growth since August 2021. Wage growth for job changers also slowed to 7.7%.

On Friday, the Labor Department is scheduled to release a closely watched monthly jobs report covering both the public and private sectors.

Economists now forecast that employment will increase by 190,000 jobs in June after gaining 272,000 jobs in May, and the unemployment rate is expected to hold at 4.0 percent.

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by Scott IzardRTTNews Editor

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