ADP shows slower June US job growth

U.S. private-sector employment grew by a seasonally adjusted 98,000 jobs in June 2026, based on ADP’s (ADP) national employment report. The increase marked a slowdown from May, when private payrolls expanded by 122,000 positions. June’s figure also fell short of the roughly 110,000 jobs anticipated by market forecasts. The data indicate a cooler pace of hiring while still reflecting net job creation.

The June report precedes the Bureau of Labor Statistics’ nonfarm payrolls release by one day and offers an early look at labor-market conditions. In recent months, ADP’s (ADP) private-payrolls series has tended to undershoot the official government payrolls count. This pattern positions the June reading as a cautious signal rather than a definitive measure of total job growth.

Job gains in June were concentrated in service-providing industries. Education and health services accounted for 48,000 new positions, nearly half of all private-sector jobs added during the month. Trade, transportation and utilities increased employment by 15,000, while financial activities added 14,000 jobs. Other services contributed a further 8,000 positions.

Leisure and hospitality, a sector closely watched as a barometer of consumer activity, added 2,000 jobs in June. Overall, services sectors provided almost all of the month’s employment growth, with only 2,000 of the new jobs coming from goods-producing industries. This underscores the continuing dominance of services in recent hiring patterns.

Goods-producing sectors showed modest and uneven performance. Manufacturing employment increased by 5,000 jobs in June, while construction added 2,000 workers. These gains were partially offset by a decline of 5,000 jobs in natural resources and mining, the only major sector to post a net loss for the month.

Taken together, the figures suggest limited expansion in production-related industries compared with the stronger momentum in services. The small net contribution from goods-producing firms contrasts with their typical sensitivity to broader economic shifts, but June’s data remain positive overall for manufacturing and construction employment.

By employer size, smaller firms played a leading role in June’s job creation. Establishments with fewer than 50 employees added 53,000 positions, more than half of the total gain. Mid-sized companies contributed 29,000 jobs, while large employers with 500 or more workers added 25,000. The distribution points to relatively stronger hiring activity among smaller businesses.

The report also highlighted continued wage growth, especially for workers changing jobs. Year-over-year pay for employees who stayed in their roles rose 4.4% in June. Workers who switched jobs saw pay increase 6.6% over the same period. This gap indicates that job changers continued to command higher wage gains than job stayers.

Separate federal data on labor demand showed that job openings remained high heading into the summer. The number of available positions in May 2026 was reported at 7.59 million. This level is near a two-year high and represents the highest reading since late 2024.

The elevated job openings figure, combined with the more moderate June payroll gain, portrays a labor market that still offers many opportunities but where the pace of actual hiring has eased. These indicators together provide important context for assessing the strength and direction of U.S. employment ahead of the official government payrolls release.