Small Businesses Drive 98,000 Private-Sector Job Gains In June

ADP data showed private employers added fewer jobs than economists expected, though hiring remained broad and completed the strongest three-month stretch in more than a year.

By yourNEWS Media Newsroom

Private employers added 98,000 jobs in June, with small businesses accounting for much of the hiring, according to payroll processor ADP.

The gain marked the end of the strongest three-month period for private-sector hiring in more than a year, even though the June total came in below economists’ expectations. Economists surveyed by Bloomberg News had projected 120,000 new private-sector jobs.

ADP previously estimated that private payrolls increased by 122,000 in May. The Department of Labor reported that private payrolls rose by 120,000 that month.

June’s hiring was led by smaller employers. Businesses with fewer than 20 workers added 38,000 jobs, while companies with 20 to 49 employees added 15,000. Employers with 50 to 249 workers added 19,000 jobs, and companies with 250 to 499 employees added 10,000. Larger companies added 25,000 workers.

The slower-than-expected increase does not necessarily indicate weakening demand for labor. Labor Department data released Tuesday showed job postings at their highest level in two years, suggesting employers still have open positions to fill.

The issue may instead be tied to labor supply. A slower-growing workforce has become a larger factor in the labor market as businesses adjust to changes connected to the Trump administration’s immigration and border policies.

ADP economist Nela Richardson said the latest hiring figures reflect both employer demand and labor availability.

“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. For now, the overall effect is a slowdown in job creation,” Richardson said.

Hiring was broad across the economy, with nearly every sector adding workers in June.

The ADP report suggests the labor market remains resilient but is expanding at a more restrained pace as employers continue seeking workers in an environment shaped by both strong job openings and limited labor supply.