Unexpected Decline! ADP Employment Report Shows Only 150,000 Jobs Added in the US in June, the Lowest Level in Four Months

ADP, known as the "mini non-farm payroll", saw a decrease in new employment for the third consecutive month, bringing another piece of good news to the Federal Reserve.

On Wednesday, July 3rd, the ADP Research Institute in the United States released a report showing that the employment in the U.S. increased by 150,000 in June, significantly lower than the expected 165,000, and slightly down from the previous 152,000. This marks the third consecutive month of decline in ADP employment and the lowest level in four months.

"Employment growth is steady, but not universal. If it weren't for the rebound in recruitment in the leisure and hospitality industry, June would have been a pessimistic month," said Nela Richardson, Chief Economist at ADP, in the report.

After the data was released, the market remained relatively stable.

The ADP report signals further cooling in the labor market. Federal Reserve Chairman Powell stated in a group discussion at the European Central Bank meeting on Tuesday that the U.S. labor market has achieved a "substantial" balance between supply and demand.

Specifically, the service industry once again became the industry with the most new job positions, with 136,000 new jobs in the service industry in June, far exceeding the 14,000 in the manufacturing industry.

At the same time, the wages of retained employees in June increased by 4.9% year-on-year, the slowest growth rate since August 2021. The wage growth of job switchers also slowed down to 7.7%.

There are sporadic signs that more U.S. companies are wielding the "layoff" axe due to cost-cutting and economic weakness.

Data released on Wednesday evening showed that U.S. Challenger companies laid off 48,786 people in June. Excluding the peak of the 2020 pandemic, this is the highest number of layoffs announced in June since 2009