By Rachel Cohen
nj.com
(TNS)
Private sector hiring unexpectedly decreased in June, payroll solutions firm ADP announced on Wednesday. It found that private sector employment shed 33,000 jobs—the first decrease since March 2023. Economists had previously forecast an increase of 100,000 jobs for the month, CNBC reported.
“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” Nela Richardson, ADP’s chief economist, said in a statement.
Richardson noted that the hiring “slowdown” has not disrupted the pay increase rate for individuals who remain in their jobs. According to the report, annual pay was up 4.4% in June, marking only a small decrease compared to a 4.5% projection in May. Pay growth for employees who switched jobs stood at 6.8%, which is another slight decrease from 7% compared to the prior month.
According to ADP, positions that fall within the “goods-producing” category, such as mining, construction and manufacturing, had reported an increase of 32,000 total jobs. Meanwhile, service-providing industries reported a plummet of 66,000, ranging from sectors such as transportation to hospitality.
When comparing job loss by region, the Midwest reported the highest contractions in June, with a decline of 24,000. It is followed by the West with 20,000, the South with 13,000 and the Northeast with 3,000.
Smaller businesses were also seen to have higher job losses last month compared to larger entities. Small firms with the number of employees ranging from one to 49 reported the lowest payroll growth with 47,000. Larger establishments, however, had an increase of 30,000.
Before the new report was released, President Donald Trump said that the growth in the country has “already begun at levels never seen before” as he rallied for his “big, beautiful bill” on his social media platform Truth Social.
“Trillions of Dollars are now being invested into the USA, more than ever before. Likewise, hundreds of Billions of Dollars in Tariffs are filling up the coffers of Treasury. The Tariff money has already arrived and is setting new records!” Trump wrote.
“We are growing our way out of the Sleepy Joe Biden MESS that he and the Democrats left us, and it is happening much faster than anyone thought possible. Our Country will make a fortune this year, more than any of our competitors, but only if the Big, Beautiful Bill is PASSED!” he continued, as the GOP’s spending bill narrowly passed the Senate and has moved to the House.
- Related article: Trump Tax Bill Passes Senate
In a separate post, Trump wrote in all uppercase letters that the country will experience “AN ECONOMIC RENAISSANCE LIKE NEVER BEFORE.”
“IT IS ALREADY HAPPENING, JUST IN ANTICIPATION OF THE BEAUTIFUL BILL. DEFICIT CUT IN HALF, RECORD INVESTMENT — CASH, FACTORIES, JOBS POURING INTO THE USA. MAGA!!!” he added.
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©2025 Advance Local Media LLC. Visit nj.com. Distributed by Tribune Content Agency LLC.
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