By Ed Frankl


U.S. private sector jobs growth slowed again, while pay rises reached a near three-year low, a monthly report said.

Private-sector employment rose by 150,000 jobs in June, down from a rise of 157,000 in May, according to the ADP National Employment Report published Wednesday, marking a third month in a row that job creation slowed.

It also was below expectations of an increase of 160,000, according to a Wall Street Journal poll of economists.

Job growth has been solid, but not broad-based, according to Nela Richardson, chief economist at ADP.

"Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month," she added.

While the services sector was again the driver of job growth, the mining and manufacturing industries showed jobs declining, the report said. The South added the most jobs, followed by the Northeast, Midwest and West regions.

Meanwhile, annual wage growth for job-stayers was 4.9%, the slowest pace of growth since August 2021, ADP said, with 7.7% wage increases for job changers.

The ADP jobs estimate is based on aggregated payroll data of more than 25 million U.S. workers and is independent from Labor Department official data. Pay data is based on the salaries of almost 10 million individual employees over a 12-month period.

Labor Department employment data for June will be published Friday, with economists also expecting jobs growth to slow, but the jobless rate to remain stable.


Write to Ed Frankl at edward.frankl@wsj.com


(END) Dow Jones Newswires

07-03-24 0850ET