Employment in the US private sector surged by 497,000 jobs in June though wage growth slowed, according to the ADP National Employment Report, released today.

“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.”

It was the biggest monthly rise since July 2022, according to CNBC, which also said Dow Jones had estimated the private sector to rise by 220,000 jobs.

Small and midsize businesses led growth in jobs, adding 299,000 and 183,000, respectively, in June. Large business lost 8,000 jobs in the month.

Among industries, leisure and hospitality posted the strongest gains.

Employment growth by industry:

• Goods-producing, up 124,000
  • Natural resources/mining, up 69,000
  • Construction, up 97,000
  • Manufacturing, down 42,000
• Service-providing, up 373,000
  • Trade/transportation/utilities, up 90,000
  • Information, down 30,000
  • Financial activities, down 16,000
  • Professional/business services, down 5,000
  • Education/health services, up 74,000
  • Leisure/hospitality, up 232,000
  • Other services, up 28,000

Total jobs added in May was revised downward to 267,000 from 278,000.

The median change in annual pay rose, but at a slower rate than the month before. For those staying in their jobs, annual pay rose by a median 6.4% in June, which is less than the 6.6% growth in May. For those changing jobs, the median change in annual pay dropped to 11.2% from 12.1% in May. The pay growth for those changing jobs was the slowest since October 2021.

The ADP National Employment Report, produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, uses ADP’s anonymized and aggregated payroll data of more than 25 million US employees to provide a representative picture of the labor market. The report details the current month’s total private employment change and weekly job data from the previous month.