Private Payrolls Increased by 98,000 in June

U.S. private companies added 98,000 jobs in June, according to the ADP National Employment Report released on July 3, 2024. This figure fell below the 150,000 jobs economists surveyed by Reuters had predicted, signaling a notable slowdown in the pace of hiring. The report indicated that job growth was concentrated in specific sectors, with the healthcare and social assistance industry leading the gains.

Within the healthcare sector, job creation was primarily driven by ambulatory healthcare services, which added 36,000 positions, and hospitals, which saw an increase of 12,000 jobs. Nursing and residential care facilities also contributed to the growth, adding 7,000 positions. This sector has been a consistent driver of employment throughout the year, reflecting ongoing demand for healthcare services.

Other industries showed more modest gains. The professional, scientific, and technical services sector added 16,000 jobs, while leisure and hospitality saw an increase of 12,000 jobs. The trade, transportation, and utilities sector added 10,000 jobs. Conversely, the information sector experienced a decline, losing 5,000 jobs, and the real estate and rental and leasing sector also saw a decrease of 3,000 jobs.

The ADP report also highlighted a decrease in job gains for small businesses, defined as those with fewer than 50 employees. These businesses added only 27,000 jobs in June, a significant drop from previous months. Mid-sized businesses (50-249 employees) added 37,000 jobs, and large businesses (250+ employees) added 34,000 jobs. This trend suggests a potential shift in hiring dynamics, with larger companies playing a more prominent role in recent job creation.