Companies in the private sector lost 33,000 jobs in June, payroll processing firm ADP said Wednesday.
The figure is well below economists’ estimates of a gain of 95,000 jobs and down from the prior month’s revised reading of 29,000.
“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” said Nela Richardson, ADP’s chief economist. “Still, the slowdown in hiring has yet to disrupt pay growth.”
PRIVATE SECTOR ADDED JUST 37,000 JOBS IN MAY, LOWEST IN OVER 2 YEARS, ADP SAYS
Professional and business services experienced the most job losses in June with a decline of 56,000, according to ADP. Education and health services lost 52,000 and financial services lost 14,000.
Manufacturing added 15,000 positions, leading job creation in June. Trade, transportation and utilities gained 14,000 jobs, construction added 9,000 and natural resources and mining added 8,000.
FED CHAIR POWELL CONFIRMS TARIFF CONCERNS PREVENTED INTEREST RATE CUTS SO FAR THIS YEAR
Large businesses – those with 500 or more employees – added 30,000 jobs in the month. Businesses with 50 to 499 employees lost 15,000 workers. Establishments with fewer than 50 employees lost 47,000 jobs.
Annual pay for job-stayers decreased to 4.4% from 4.5% while annual pay for job changers fell to 6.8% from 7%.
The ADP data is released before the Labor Department’s nonfarm payrolls report, which is due on Friday morning and can differ notably. The government data is expected to show an increase of 110,000 positions, below the 139,000 reported in May.
Read the full article here
