U.S. private employers added 98,000 jobs in June, according to the ADP National Employment Report published Tuesday. The monthly gain was a sharp slowdown from the revised 122,000 jobs added in May, suggesting a more cautious hiring environment as the year progresses. Workers who kept their jobs gained 4.4 percent annually in pay, the same rate as the previous month, underscoring steady but not accelerating wage pressures.
The report, published by ADP Research in partnership with the Stanford Digital Economy Lab, is based on granular payroll data from over 26 million private-sector workers. Its data is one of the first glimpses of the labor market conditions each month and often serves as a preview for the more complete government employment figures to come.
“Today’s data is sending mixed signals,” said Dr. Nela Richardson, chief economist, ADP. “The hiring pace is telling a supply and demand story,” she said. “We know people are taking longer to find jobs, but we are also seeing signs of tightness in the labour supply in some sectors. For now, the net effect is a slowing in job creation.”
Uneven Recovery: Sector-by-Sector Performance
Most of the new jobs were still in service-related fields, which accounted for the bulk of new jobs. Education and health services was the best performer, adding 48,000 jobs as demand for caregivers and educators continued to grow. Trade, transportation and utilities came next with 15,000 new roles and financial activities added 14,000. The information sector added 7,000 positions, continuing the digital transformation.
But the leisure and hospitality industry added just 2,000 jobs, a sixth straight month of modest gains as the industry continues to adjust to post-pandemic changes and labor shortages. Professional and business services added only 2,000 jobs. Other services added 8,000.
Goods-producing industries were generally flat with a net gain of 2,000 jobs. Manufacturing contributed a solid 5,000 jobs, while construction added 2,000. But natural resources and mining shed 5,000 jobs as commodity prices remain volatile.
By region, the South added the most jobs, 37,000, reflecting strong hiring in the West South Central states. The Northeast was a close second with 33,000 additions, split between New England and the Mid-Atlantic. The Midwest gained 21,000 jobs, the West 17,000, with the Mountain states outpacing the Pacific states.
Smaller companies continued to create jobs at a disproportionate rate. Firms with 1 to 49 employees added 53,000 new jobs, while medium and large businesses added more modestly. The pattern suggests that smaller firms can still be nimble and responsive to local opportunities, while larger employers are adopting a more cautious stance.
Divergent but Gradual Wage Growth
Compensation trends were more a continuation than acceleration. For job-stayers, the median pay increase was still 4.4 percent year over year. Job switchers also saw larger gains, median annual pay increasing 6.6 percent, illustrating that mobility continues to be a key driver of wage growth.
Pay increases varied by industry. The financial activities grew at 5.1 percent, followed by manufacturing at 4.9 percent and construction at 4.6 percent. Information, professional services, education/health and other services were between 4.0 and 4.5 percent. The smallest employers (1-19 workers) reported only 2.5 percent pay growth and smaller firms again lagged.
Economists are interpreting these numbers within a broader context of economic uncertainty, including persistent worries about inflation, interest rate policy and shifting consumer demand. The labor market has remained surprisingly resilient for years, but recent ADP data and other indicators point to a gradual normalization after the strong rebound from pandemic lows.
The June figures come as companies across the sectors grapple with the costs of hiring at a time of tighter credit conditions and uneven demand. At the same time, workers seem pickier, and the upshot is longer job-search times in some fields.
The ADP report will be a helpful precursor to the upcoming release from the Bureau of Labor Statistics. Analysts will be looking to see if the official numbers match ADP’s private-sector snapshot, or tell a different story for government and other employment categories.
The July 2026 ADP National Employment Report will be released August 5 at 8:15 AM ET. The full report, historical data and interactive charts from the June report are available at adpemploymentreport.com. As As the economy enters the second half of the year, policymakers, business leaders and workers will be looking closely to see if the labor market can continue to support steady, if slower, job creation and produce consistent wage gains. The latest ADP numbers are showing moderation not decline which suggest a cautious optimism for the months ahead.
