In June, private sector employment rose by 98,000 according to ADP, down from 122,000 in May and slightly below the forecast of 110,000.
Nearly half of the job creation in June — 48,000 — came from the education and health services sector, a consistent leader in payroll growth. All but 2,000 of the new jobs came from services.
Annual pay gains for those staying in their jobs held steady at 4.4%, while edging higher to 6.6% for job switchers.
“The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries,” said Nela Richardson, ADP’s chief economist.
Employment gains were tilted toward small businesses. Establishments with fewer than 50 employees added 53,000, while companies that employ 500 or more saw a gain of 25,000 and those in between rose by 29,000.
