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Private payrolls rose by 98,000 in June, less than expected, ADP reports

Healthcare and education drove nearly half the gain, while small businesses added 53,000 jobs and natural resources and mining lost 5,000, ADP said.

  • On Tuesday, June 30, 2026, ADP reported private sector employment increased by 98,000 jobs in June, falling short of the 110,000 Dow Jones consensus forecast and declining from May's unrevised 122,000.
  • Nela Richardson, ADP's chief economist, cited labor supply constraints as a factor in the slowdown, stating "for now, the overall effect is a slowdown in job creation." Annual pay gains for job-stayers held steady at 4.4%.
  • Establishments with fewer than 50 employees led hiring with 53,000 new positions, while education and health services added 48,000 jobs, representing nearly half of June's total growth.
  • The ADP report serves as a precursor to the Bureau of Labor Statistics nonfarm payrolls count due Thursday, where Wall Street anticipates a 115,000 increase in payrolls.
  • ADP's count has generally undershot official government reports in recent months, suggesting the 98,000 figure may not fully capture the labor market's underlying strength compared to official data this year.
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Recruiting Headlines broke the news on Wednesday, July 1, 2026.
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