#United States #Roseland, New Jersey #Wage Growth #ADP Employment #Job Losses

Overview of the ADP National Employment Report

The ADP National Employment Report for June 2025 has arrived, revealing that the private sector has experienced a decline in employment numbers. According to the report, compiled by ADP Research and the Stanford Digital Economy Lab, the private sector lost a total of 33,000 jobs last month. While this report showcases alarming job losses, there is also a positive note regarding wage growth for workers.

Job Losses by Industry

The report highlights specific sectors that have contributed to the drop in employment. Notably, job losses were concentrated in the professional and business services sector, which saw significant declines. Furthermore, education and health services also faced challenges, leading to a further downturn in employment. In contrast, sectors like leisure and hospitality, along with manufacturing, presented signs of growth, showing that not all areas of the economy are struggling.

Here’s a quick breakdown of employment changes by industry in June:

• - Goods-producing: -32,000

- Natural resources/mining: -8,000
- Construction: -9,000
- Manufacturing: -15,000

• - Service-providing: -66,000

- Trade/transportation/utilities: +14,000
- Information: +5,000
- Financial activities: -14,000
- Professional/business services: -56,000
- Education/health services: -52,000
- Leisure/hospitality: +32,000
- Other services: +5,000

The report also features job losses by region, with the Midwest facing the largest drop of 24,000 jobs. On a more granular note, small establishments with fewer than 20 employees reported losses of nearly 47,000 jobs overall.

Wage Growth Trends

On a brighter side, the report indicates that annual pay has seen an increase of 4.4%, albeit slightly down from May's figure of 4.5%. For those changing jobs, the growth was even more notable at 6.8%, showcasing that the labor market conditions may favor those seeking new opportunities.

The wage growth rates by sector for job-stayers include:

• - Natural resources/mining: 4.5%
• - Construction: 4.6%
• - Manufacturing: 4.6%
• - Trade/transportation/utilities: 4.2%
• - Education/health services: 4.6%
• - Leisure/hospitality: 4.7%

Interestingly, even amid hiring hesitancy and job losses, wages are still on the rise, suggesting that the competition for skilled workers may be influencing salary adjustments. This could provide some reassurance to workers worried about job security.

Expert Insights

Dr. Nela Richardson, chief economist at ADP, noted that despite the layoffs, the reluctance to hire and replace departing staff has significantly impacted employment numbers. He states, "Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month. Still, the slowdown in hiring has yet to disrupt pay growth."

This perspective is critical when analyzing how businesses approach staffing in uncertain economic conditions. The report emphasizes the need for companies to adapt and reassess their workforce requirements in light of changing market dynamics.

Conclusion

The June ADP National Employment Report underscores a mixed picture of the U.S. labor market. While job losses of 33,000 are certainly concerning, the continued increase in wages presents a counterbalance for workers navigating these challenging times. As we look toward the future, the interplay between job security and wage growth will be essential in shaping employee outlooks and corporate strategies alike. For further insights, companies and individuals are encouraged to explore the ADP Employment Report through their official website, where detailed analytics and historical data are available monthly.

For additional resources or to access the complete report, please visit ADP Employment Report.