Job growth exploded higher in June, according to payroll processor ADP.
ADP said that the private sector added 497,000 jobs last month, far more than the 225,000 expected. The leisure and hospitality sector added a jaw-dropping 232,000 jobs.
The construction sector added 97,000 jobs. Natural resources and mining added 69,000. Manufacturing payrolls shrank by 42,000.
Trade, transportation, and utilities grew by 90,000. Education and health services added 74,000 workers to payrolls. The information sector shrank by 30,000 jobs and finance contracted by 16,000. Professional and business services shrank by 5,000.
The biggest growth came from smaller businesses hiring. Businesses with 19 or fewer people added 162,000 workers. Those with 20 to 49 workers added 137,000. Businesses with between 50 and 250 workers added 171,000. Businesses with between 250 and 500 workers added 12,000 jobs and larger businesses shrank their payrolls by 8,000.
“Consumer-facing service industries had strong June, aligning to push job creation higher than expected. But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge,” said ADP chief economist Nela Richardson.
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