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U.S. companies add 98,000 jobs in June
Private-sector hiring capped its strongest three-month stretch in more than a year
Key Takeaways:
- U.S. private-sector payrolls rose by 98,000 in June after a 122,000 increase in the prior month.
- Education and health services accounted for about half of the hiring gains.
- Workers who changed jobs saw pay rise 6.6% from a year earlier, according to ADP.
U.S. companies continue to boost payrolls; firms added 98,000 jobs in June
U.S. private-sector job creation was solid again in June, capping the best three-month stretch for hiring in more than a year.
Company payrolls rose by 98,000 after a 122,000 increase in the prior month, according to ADP Research data released July 1. The median estimate in a Bloomberg survey of economists called for a 120,000 increase.
The figures support the view that the labor market has strengthened after several months of uneven hiring, as job openings have risen and layoffs remain low. If confirmed in official government data, the trend could increase bets that the Federal Reserve will raise interest rates this year to contain inflation.
Education and health services accounted for about half of the gains, followed by trade, transportation and utilities and financial activities. Almost every sector boosted head count, and the increase was also broad-based across firm size and region.
“There is a steadiness in the labor market; there’s not an acceleration,” Nela Richardson, chief economist at ADP and a contributor to Bloomberg Television, said on a call with reporters. “It is a low-hire, but importantly, low-fire” environment.
The ADP report, published in collaboration with the Stanford Digital Economy Lab, also showed workers who changed jobs saw a 6.6% increase in pay from a year earlier, an acceleration from the prior month. Wage growth for those who stayed put was little changed at 4.4%.
The government’s employment report, due July 2, also includes public-sector hiring and is expected to show U.S. employers added 115,000 jobs in June. That would mark the strongest six-month stretch for hiring since mid-2024.
Looking ahead, a key question is whether the labor market will see a boost from falling energy prices and improved consumer confidence after the U.S. and Iran agreed to an interim deal to end the war. The Middle East conflict had driven inflation higher and pushed consumer sentiment to record lows.
ADP bases its findings on payrolls covering more than 26 million U.S. private-sector employees.
