ADP Jobs Report Shows Slower Private Hiring in June
ADP Jobs Report showed private hiring slowed in June, pay remained elevated and planned layoffs fell, supporting investor views of steady labor momentum.
KEY TAKEAWAYS
- Private payrolls rose 98,000 in June, below economists' forecasts.
- Annual pay growth was 4.4% year-over-year, remaining elevated versus pre-pandemic norms.
- Announced planned layoffs fell 53% year-over-year, supporting a broadly stable labor-market narrative.
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ADP said in its July 1, 2026 National Employment Report that private hiring slowed in June and fell short of economists' forecasts, even as wages remained elevated and labor demand showed signs of improvement. Market observers described the combination as consistent with a stable labor market.
Hiring Trends and Wage Growth
The ADP National Employment Report showed private payrolls increased by 98,000 jobs in June 2026 on a seasonally adjusted basis. This monthly series measures employment at private businesses and excludes government payrolls. May’s private-sector gain was unrevised at 122,000 jobs, providing a comparison for June’s softer increase.
Economists had forecast private payroll gains between 110,000 and 118,000 jobs for June, so ADP’s figure fell below consensus. The variation in estimates reflected differing baseline expectations ahead of the government’s official data.
ADP reported wage growth of 4.4% year-over-year for job-stayers in June, indicating continued moderation in pay increases. Despite this slowdown, wage growth remained elevated compared with pre-pandemic levels. The release did not include numeric forward guidance.
Layoffs, Sector Gains, and Firm-Size Patterns
ADP said labor demand was improving despite the modest headline gain. A separate tally showed announced planned layoffs fell 53% year-over-year in June, based on corporate announcements.
Education and health services accounted for roughly half of June’s private-sector job gains, adding 48,000 positions. Meanwhile, several interest-sensitive and goods-producing sectors showed weak or negative growth, highlighting a divergence between service-sector strength and softness in more cyclical areas.
The report’s firm-size breakdown showed larger employers outpaced small businesses in hiring during June. This continued a recent trend of bigger firms accounting for a greater share of net private hiring.
Taken together, the modest payroll increase, sustained wage growth, and sharp decline in planned layoffs suggest a broadly stable labor market rather than clear deterioration.
The ADP National Employment Report is a private-sector data product produced by ADP Research in collaboration with the Stanford Digital Economy Lab. It is not an official government statistic but serves as an early market indicator ahead of the Bureau of Labor Statistics’ Employment Situation report.
