Without the surge in leisure and hospitality hiring, the total would have been considerably lower. The sector added 63,000 jobs, easily the biggest gain among the categories that payrolls processing firm ADP measures.
Other sectors showing gains included construction (27,000), professional and business services (25,000), other services (16,000) and trade, transportation and utilities (15,000).
On the downside, natural resources and mining showed a decline of 8,000, manufacturing lost 5,000 and information was off 3,000.
“Job growth has been solid, but not broad-based,” ADP chief economist Nela Richardson said. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.”
The pace of wage gains also moved lower for those who stayed in their jobs, down to 4.9% on a year-over-year basis for the smallest increase since August 2021. Job switchers saw a 7.7% increase, a number that also has been trending lower.
The bulk of job creation came from companies that employ 50-499 workers, a group that added 88,000 on the month. Small businesses contributed just 5,000. Geographically, 80,000 jobs came from the South, or more than half the total.
ADP’s report serves as a precursor to the more closely watched nonfarm payrolls count that the Labor Department will release Friday. That report is expected to show an addition of 200,000 jobs, following May’s 272,000.
The two reports often differ, sometimes substantially, with ADP consistently undershooting the Bureau of Labor Statistics count. For May, the BLS reported that private payrolls rose by 229,000, or 72,000 more than ADP’s estimate.
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