ADP says 150,000 private-sector jobs created in June, smallest gain in five months
By Jeffry Bartash
U.S. labor market may be cooling off again
The numbers: U.S. businesses add a modest 150,000 new jobs in June, paycheck company ADP said, to mark the smallest increase in five months, possibly another sign the labor market is cooling.
Economists polled by the Wall Street Journal had forecast a gain of 160,000.
"Job growth has been solid, but not broad-based," said Nela Richardson, chief economist, ADP. "Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month."
ADP is not a good predictor historically of the government's official jobs estimate that follows a few days later, but the two reports do move in the same direction over time.
The government on Friday is expected to report that 200,000 new jobs were created in June, according to a Wall Street Journal poll.
Key details: Big and medium-sized companies created most of the new jobs. Small-business employment continued to lag behind.
Some 63,000 - or 42% - of the new jobs last month were generated by hotels, restaurants and other companies in leisure and hospitality.
Workers who've stayed in the same job earned a 4.9% increase in pay in the 12 months ending in June, ADP said. That's the smallest increase in almost three years.
The ADP report only tracks private-sector hiring. The U.S. jobs report includes government workers.
The increase in employment in May was raised slightly to 157,000, revised ADP figures showed.
Big picture: Companies are still adding workers at an above-average pace, but job openings have declined and hiring has slowed since last year in response to higher interest rates.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open mixed in Wednesday trading.
-Jeffry Bartash
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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07-03-24 0829ET
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