US private sector adds fewer jobs than expected in June - ADP

(Sharecast News) - Private sector employment in the US rose less than expected in June, according to figures released on Wednesday by ADP. Employment increased by 150,000 from May, versus expectations for a 165,000 jump. May's gain was revised to 157,000 from 152,000.

Small businesses with fewer than 50 employees added 5,000 jobs, while medium businesses with between 50 and 499 employees added 88,000. Large businesses with more than 500 employees created an additional 58,000 jobs.

The service sector added 136,000 jobs, while the goods-producing sector saw a 14,000 increase.

The data also showed that job-stayers saw a 4.9% rise in annual pay in June, which was the slowest pace of growth since August 2021. Pay gains for job-changers also slowed, to 7.7%.

Nela Richardson, chief economist at ADP, said: "Job growth has 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."