Private sector companies added 497,000 jobs in June, more than double expectations, ADP says

July 06, 2023

The U.S. labor market showed no signs of letting up in June, as companies created far more jobs than expected, payroll processing firm ADP reported Thursday. Private sector jobs surged by 497,000 for the month, well ahead of the downwardly revised 267,000 gain in May and much better than the 220,000 Dow Jones consensus estimate. Annual pay rose at a 6.4% rate, representing a continued slowing that nonetheless still is indicative of brewing inflationary pressures. "Consumer-facing service industries had a strong June, aligning to push job creation higher than expected," said Nela Richardson, chief economist at ADP. "But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge."