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US adds 102,000 nonfarm jobs in June, but ADP report cites further slowdown in hiring

July 03, 2019

The US added 102,000 nonfarm jobs in June, but the number appears to be a further sign of a slowing job market, according to the ADP National Employment Report released today.

June’s number is up from the 41,000 added in May, but down from the 255,00 added in April and 158,000 added in March.

“The job market continues to throttle back. Job growth has slowed sharply in recent months, as businesses have turned more cautious in their hiring,” said Mark Zandi, chief economist of Moody’s Analytics. “Small businesses are the most nervous, especially in the construction sector and at bricks-and-mortar retailers.”

Click on chart to enlarge.

Small businesses shed 23,000 jobs in June, according to the report. However, large businesses added 65,000 jobs and medium-sized businesses added 60,000.

Jobs also fell by 15,000 in the goods-producing sector with construction jobs falling by 18,000 in June and natural resources/mining jobs down by 4,000. However, manufacturing did add 7,000 jobs.

The service-providing sector added 117,000 jobs in June, although the information sector lost 3,000 jobs.

“Job growth started to show signs of a slowdown,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “While large businesses continue to do well, small businesses are struggling as they compete with the ongoing tight labor market. The goods-producing sector continues to show weakness. Among services, leisure and hospitality’s weakness could be a reflection of consumer confidence.”

Leisure/hospitality, part of the service-providing sector, added 3,000 jobs in June, but that is down from the 16,000 added in May and 45,000 added in April.

The ADP National Employment report is derived from anonymous payroll data of ADP client companies and measures nearly 24 million US workers. The report is produced by the ADP Research Institute in collaboration with Moody’s Analytics Inc.

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