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Private Payrolls Growth Slows in June, Adding 150,000 Jobs
As a seasoned business analyst, I've been following the latest trends in the U.S. labor market, and the recent ADP report has caught my attention. In June, private businesses added 150,000 jobs to their workforce, a slight dip from the revised 157,000 jobs in May and shy of the 160,000 jobs expected by Dow Jones. This deceleration hints at a potential slackening in the U.S. labor market.
The leisure and hospitality sector saw the most substantial surge, adding 63,000 jobs. However, the wage growth rate for existing employees decelerated to 4.9% year-over-year, marking the smallest increase since August 2021.
The report highlights a nuanced job landscape where certain sectors flourished while others faltered. Construction, professional and business services, other services, and trade, transportation, and utilities experienced job gains. On the other hand, natural resources and mining, manufacturing, and information sectors faced job declines.
ADP's chief economist, Nela Richardson, notes that job expansion, while robust, lacked universality. Had it not been for the resurgence in leisure and hospitality hiring, June's job market outlook would have been less sanguine.
Mid-sized companies employing 50-499 workers led the job creation, adding 88,000 jobs, while small businesses contributed a mere 5,000 jobs. Geographically, the Southern region accounted for 80,000 of the total job additions.
This report precedes the highly anticipated nonfarm payrolls data release by the Labor Department expected later in the week. Forecasts suggest an increase of 200,000 jobs in this report, following May's addition of 272,000 jobs. It's worth noting that discrepancies between ADP's and the Bureau of Labor Statistics' job counts are not uncommon, with ADP typically reporting lower figures than the BLS.
Original Article: https://www.cnbc.com/2024/07/03/private-payrolls-grew-by-just-150000-in-june-less-than-expected.html
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