The employment
report released by Automatic Data Processing Inc. (ADP) and Moody's Analytics showed
that U.S. private employers added 150,000 jobs in June. This represented the lowest
number since January (+111,000).
Economists had forecast
an addition of 160,000 new jobs for June.
Meanwhile, the May
figure saw an upward
revision to 157,000 from the originally reported 152,000.
According to
the report, the June job gain was led by leisure and hospitality (+63,000), construction
(+27,000), and professional and business services (+25,000). At the same time, natural
resources and mining (-8,000), manufacturing (-5,000), and information (-7,000)
shed jobs last month.
The report also
revealed that pay growth for job-changers continued to decelerate last month, dropping from
7.8 per cent y-o-y in May to 7.7 per cent y-o-y. Meanwhile, pay growth for
job-stayers slowed from 5.0 per cent y-o-y to
4.9 per cent y-o-y, the lowest level since August 2021.
Commenting on
the latest report, Nela Richardson, ADP’s chief economist, noted that job
growth had been solid, but not broad-based. “Had it not been for a rebound in
hiring in leisure and hospitality, June would have been a downbeat month,” she
added.