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June Jobs Slowdown: Healthcare Leads Modest Hiring
1 Jul
Summary
- Private sector added 98,000 jobs in June, below expectations.
- Healthcare sector drove nearly half of all new job growth.
- Annual pay gains held steady for job stayers at 4.4%.
Private sector employment growth slowed in June, with 98,000 jobs added, a decrease from May's revised 122,000 and below the expected 110,000. This data precedes the official Bureau of Labor Statistics report.
The education and health services sector was the primary engine for job creation, accounting for 48,000 of the new positions. Overall, service-providing industries generated almost all new jobs.
Other sectors showing gains included trade, transportation, and utilities (15,000), and financial activities (14,000). Conversely, natural resources and mining lost 5,000 jobs. Leisure and hospitality saw minimal growth with only 2,000 new positions.
ADP's chief economist noted a "slowdown in job creation," potentially due to longer job search times and labor supply constraints in certain industries. Annual pay for job stayers remained at 4.4%, while job switchers saw a 6.6% increase.
Small businesses, particularly those with fewer than 50 employees, led in job additions, with 53,000 new positions. Larger companies also contributed, though at a lesser rate.
