Private-sector employment increased by 497,000 jobs in June, according to the June ADP National Employment Report produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
Service-providing jobs increased by 373,000. Of them, the professional/business services sector lost 5,000 jobs, but the education/health services sector added 74,000 jobs, and the leisure/hospitality sector gained 232,000 jobs.
The Northeast region of the country added the most jobs, 250,000, whereas the South lost 10,000 positions.
By establishment size, small establishments (49 or fewer workers) gained the most jobs, 299,000, whereas large establishments (500 or more employees) lost 8,000 jobs.
“Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” ADP Chief Economist Nela Richardson said in a statement, “but wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge.”
Annual pay increases
Overall, annual pay was up 6.4% year over year, according to the report.
People who stayed in their positions saw a median year-over-year pay increase of 6.4%, down from 6.6% in May. Median annual pay for job-stayers was $57,400.
By sector, those who stayed in their jobs in the professional/business services sector saw a median change in annual pay of 6.2%, whereas education/health services sector job-stayers saw a 6.9% change, and those with jobs in the leisure/hospitality sector saw a 7.9% change.
The median change in annual pay for job-stayers was 6.2% for the professional/business services sector, 6.9% for the education/health services sector and 7.9% for the leisure/hospitality sector.
The median change in annual pay for job-stayers was highest for medium-sized firms — companies with 50 to 499 positions, where pay increased 6.7% for companies with 50 to 249 jobs and 6.6% for firms with 250 to 499 workers.
For people who changed jobs, pay gains slowed for the 12th straight month, with June seeing a median change of 11.2%, the slowest pace of growth since October 2021. See more pay insights here.
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