A job seeker fills out a request for information during the HIRE360 Diversity Hiring Expo & Mega Career Expo at the Carson Event Center on June 30, 2026, in Carson, California.
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Companies added slightly fewer workers than expected in June, with hiring targeted heavily toward healthcare-related sectors, ADP reported Wednesday.
Private sector employment grew by a seasonally adjusted 98,000 for the month, down from an unrevised 122,000 in May and a bit below the Dow Jones consensus forecast for 110,000, the payrolls processing firm reported.
The ADP report serves as a precursor to the more widely watched nonfarm payrolls count due Thursday from the Bureau of Labor Statistics. ADP’s count in recent months has generally undershot the official government report, which has shown mostly solid job creation this year.
Nearly half the growth in June — 48,000 — came from the education and health services sector, a consistent leader for payroll growth. All but 2,000 of the new jobs came from services.
Other sectors posting gains included trade, transportation and utilities (15,000), financial activities (14,000) and other services (8,000). Natural resources and mining lost 5,000 jobs, the only sector in the red. Leisure and hospitality added just 2,000 positions, continuing a slow year for an industry seen as an indicator of underlying consumer demand.
“The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find
work, but there also are signs of labor supply constraints in certain industries,” said Nela Richardson, ADP’s chief economist. “For now, the overall effect is a slowdown in job creation.”
Annual pay gains for those staying in their jobs held steady at 4.4% while edging higher to 6.6% for job switchers.
Employment gains were tilted toward small businesses. Establishments with fewer than 50 employees added 53,000, while companies that employ 500 or more saw a gain of 25,000 and those in between rose by 29,000.
The Wall Street consensus is for payrolls to rise by 115,000 for June, with the unemployment rate steady at 4.3%. Average hourly earnings are expected to show a pick-up of 0.3% monthly and 3.5% annually.
