June job growth ‘solid, but not broad-based’

Job growth in the private sector slowed for the third consecutive month in June, according to the monthly ADP National Employment Report Economy Lab report, published Wednesday.

The report, which analyzes the payroll transactions of more than 25 million US workers, is produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

“Job growth has been solid, but not broad-based,” ADP Chief Economist Nela Richardson said in a press release issued in conjunction with the report. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.”

The health/education sector added 9,000 jobs in June, out of 150,000 jobs added economy-wide. In May, the sector had added 46,000 jobs out of 152,000 jobs added in the private sector during the month.

The leisure/hospitality sector saw the lion’s share of job growth in June, with 63,000 jobs added, according to the data.

Regionally, the biggest job gains in June occurred in the South, with 80,000 jobs added. Private employers in the Northeast added 31,000 jobs, followed by the Midwest, with 26,000 jobs, and the West, with just 4,000 jobs added in  June.

Medium-sized firms (those with 50 to 499 employees) gained the largest number of jobs in June, 88,000. Large companies (those with 500 or more employees) gained 58,000 jobs. Small companies (with one to 49 employees) saw a modest increase of 5,000 jobs during the month. 

Pay gains

“Year-over-year pay gains for job-stayers were 4.9% in June, the slowest pace of growth since August 2021,” according to the report. “Pay gains for job-changers also slowed, to 7.7%.”

Companies with 19 or fewer employees saw the smallest median change in annual pay, 4.1%; companies with 250 to 400 employees as well as companies with 500 or more employees saw an average change of 4%. Companies with 50 to 249 employees saw a 5.1% change, and companies with 20 to 49 employees saw the greatest median change in annual pay, at 5.8%.