The latest report from ADP has revealed that the leisure and hospitality sector played a crucial role in boosting job growth in June, adding 63,000 jobs and outpacing other categories measured by the firm. Without this surge, overall job numbers would have been significantly lower. However, despite this positive trend in leisure and hospitality, some sectors like natural resources, manufacturing, and information saw declines in employment.
ADP’s chief economist, Nela Richardson, noted that while job growth overall has been solid, it has not been evenly distributed across all sectors. The report also highlighted a decrease in the pace of wage gains for those staying in their current positions, with job switchers also experiencing a downward trend in wage increases. The report showed that most job creation came from medium-sized companies, with small businesses contributing minimally to overall job growth in June.
Looking ahead, the ADP report is seen as a precursor to the Labor Department’s upcoming nonfarm payrolls count, which is expected to show an addition of 200,000 jobs. While the ADP and BLS reports can sometimes differ in their estimates, with ADP often underestimating compared to BLS, analysts will be closely monitoring the upcoming release to gauge the overall health of the labor market.