Private Payrolls Growth Slows in June
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 39 minutes ago
0mins
Source: CNBC
- Slower Job Growth: The ADP report indicates that private sector employment rose by 98,000 in June, falling short of the expected 110,000, highlighting a slowdown in hiring, particularly in healthcare-related sectors.
- Uneven Sector Gains: The education and health services sector accounted for 48,000 of the new jobs, demonstrating consistent growth, while the natural resources and mining sector lost 5,000 jobs, reflecting disparities across industries.
- Small Business Dominance: Establishments with fewer than 50 employees added 53,000 jobs, while larger companies with 500 or more employees saw only a gain of 25,000, indicating the significant role small businesses play in job creation.
- Stable Wage Growth: Annual pay gains for those remaining in their jobs held steady at 4.4%, while job switchers saw an increase to 6.6%, indicating ongoing wage competition in the current economic landscape.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 223.950
Low
230.00
Averages
276.83
High
332.00
Current: 223.950
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human resources management, payroll processing, and professional employer organization services. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, compliance services, insurance services and others. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers' compensation programs. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Release Schedule: ADP is set to release its financial results for the fourth fiscal quarter ending June 30, 2026, before the Nasdaq opens on July 29, 2026, reflecting the company's ongoing commitment to transparency and information disclosure.
- Conference Call Details: The company will host a conference call at 8:30 AM ET on the same day, featuring CEO Maria Black and CFO Peter Hadley, which enhances engagement and communication with investors.
- Change in Information Release Method: ADP has shifted from publishing financial results via news wire to posting them on the Investor Relations section of its website, indicating a modernization in its information dissemination approach.
- Investor Participation Opportunity: Investors can listen to the conference call live and view the accompanying slide presentation on ADP's website, increasing accessibility to information and further enhancing investor confidence.
See More
Private Payrolls Growth Slows in June
- Slower Job Growth: The ADP report indicates that private sector employment rose by 98,000 in June, falling short of the expected 110,000, highlighting a slowdown in hiring, particularly in healthcare-related sectors.
- Uneven Sector Gains: The education and health services sector accounted for 48,000 of the new jobs, demonstrating consistent growth, while the natural resources and mining sector lost 5,000 jobs, reflecting disparities across industries.
- Small Business Dominance: Establishments with fewer than 50 employees added 53,000 jobs, while larger companies with 500 or more employees saw only a gain of 25,000, indicating the significant role small businesses play in job creation.
- Stable Wage Growth: Annual pay gains for those remaining in their jobs held steady at 4.4%, while job switchers saw an increase to 6.6%, indicating ongoing wage competition in the current economic landscape.
See More
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- Industry Performance Variance: Among the new jobs, the service sector contributed 96,000 positions while the goods-producing sector added only 2,000, reflecting disparities in hiring activity across different fields that could influence future investment strategies.
- Wage Growth Trends: In June, the year-over-year pay growth for job-stayers remained steady at 4.4%, while job-changers saw an acceleration to 6.6%, indicating increased competition in the labor market, prompting companies to enhance compensation to attract and retain talent.
- Regional Employment Distribution: Job growth varied by region, with the Northeast adding 33,000 jobs, the South 37,000, and the West 17,000, highlighting regional economic recovery disparities that businesses should consider when formulating regional strategies.
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- Data Source and Adjustments: These figures come from the NER Pulse, which utilizes ADP's high-frequency data and is seasonally adjusted; however, the numbers are preliminary and may change as new data is incorporated.
- Release Frequency and Transparency: The NER Pulse is published every Tuesday at 8:15 a.m., providing 12 weeks of historical data to ensure accurate estimates of real-time employment trends, thereby enhancing market confidence in employment data.
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See More
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- Earnings Release Schedule: ADP is set to release its financial results for the fourth fiscal quarter ending June 30, 2026, before the Nasdaq opens on July 29, 2026, reflecting the company's ongoing commitment to transparency and information disclosure.
- Conference Call Details: The company will host a conference call at 8:30 AM ET on the same day, featuring CEO Maria Black and CFO Peter Hadley, which enhances engagement and communication with investors.
- Change in Information Release Method: ADP has shifted from publishing financial results via news wire to posting them on the Investor Relations section of its website, indicating a modernization in its information dissemination approach.
- Investor Participation Opportunity: Investors can listen to the conference call live and view the accompanying slide presentation on ADP's website, increasing accessibility to information and further enhancing investor confidence.
See More
Private Payrolls Growth Slows in June
- Slower Job Growth: The ADP report indicates that private sector employment rose by 98,000 in June, falling short of the expected 110,000, highlighting a slowdown in hiring, particularly in healthcare-related sectors.
- Uneven Sector Gains: The education and health services sector accounted for 48,000 of the new jobs, demonstrating consistent growth, while the natural resources and mining sector lost 5,000 jobs, reflecting disparities across industries.
- Small Business Dominance: Establishments with fewer than 50 employees added 53,000 jobs, while larger companies with 500 or more employees saw only a gain of 25,000, indicating the significant role small businesses play in job creation.
- Stable Wage Growth: Annual pay gains for those remaining in their jobs held steady at 4.4%, while job switchers saw an increase to 6.6%, indicating ongoing wage competition in the current economic landscape.
See More
U.S. Private Sector Employment Increased by 98,000 in June
- Employment Growth: According to the ADP National Employment Report, the U.S. private sector added 98,000 jobs in June 2026, indicating potential economic recovery despite a slowdown in overall hiring, particularly strong in financial and information sectors.
- Industry Performance Variance: Among the new jobs, the service sector contributed 96,000 positions while the goods-producing sector added only 2,000, reflecting disparities in hiring activity across different fields that could influence future investment strategies.
- Wage Growth Trends: In June, the year-over-year pay growth for job-stayers remained steady at 4.4%, while job-changers saw an acceleration to 6.6%, indicating increased competition in the labor market, prompting companies to enhance compensation to attract and retain talent.
- Regional Employment Distribution: Job growth varied by region, with the Northeast adding 33,000 jobs, the South 37,000, and the West 17,000, highlighting regional economic recovery disparities that businesses should consider when formulating regional strategies.
See More
Ford and Others Rehire Human Engineers Amid AI Challenges
- Ford's Rehiring Initiative: Ford is reportedly rehiring hundreds of experienced engineers to address quality issues that automated systems could not resolve, indicating a strategic shift towards valuing human resources to enhance product quality and customer satisfaction.
- CBA's Layoff Reversal: Commonwealth Bank of Australia laid off over 40 customer service staff last year in favor of an AI voice bot, but due to the bot's inability to handle complex queries, the bank reversed these layoffs, reflecting a reassessment of the importance of human capital.
- IBM's Hiring Plans: After AI managed 94% of routine HR requests but failed to address 6% involving ethical dilemmas, IBM announced plans to triple its entry-level hiring in the U.S. by 2026, underscoring the necessity of human oversight in the AI landscape.
- Analysts Warn of AI Replacement Risks: Analysts caution that relying on technology to replace humans without adequate training can leave teams unprepared to leverage AI effectively, with 39% of companies having made redundancies due to AI, yet 55% admitting to regretting those decisions, highlighting the growing value of human-AI collaboration.
See More
Companies Rehire Human Talent Amid AI Challenges
- Human Resource Reversal: Ford is reportedly rehiring hundreds of experienced engineers to address quality issues that automated systems could not resolve, highlighting a renewed focus on human capital to enhance product quality and customer satisfaction.
- CBA's Layoff Reversal: The Commonwealth Bank of Australia has reversed its decision to cut 40 customer service roles after its AI voice bot failed to meet customer demands, indicating a strategic shift towards balancing technology and human resources to improve service efficiency.
- IBM's Hiring Expansion: IBM plans to triple its entry-level hiring in the U.S. by 2026, acknowledging that while its AI system managed 94% of routine requests, it struggled with 6% involving ethical dilemmas, underscoring the urgent need for human oversight.
- Industry Trend Analysis: A report by Intuition Labs reveals that 39% of businesses made redundancies due to AI deployment, yet 55% of those companies admitted to making poor decisions, emphasizing the importance of human-AI collaboration for sustainable growth.
See More
U.S. Private Sector Job Growth Rebounds
- Job Growth Rebound: For the four weeks ending June 6, 2026, U.S. private employers added an average of 30,750 jobs per week, marking the first increase in hiring since May 2, 2026, indicating signs of economic recovery.
- Data Source and Adjustments: These figures come from the NER Pulse, which utilizes ADP's high-frequency data and is seasonally adjusted; however, the numbers are preliminary and may change as new data is incorporated.
- Release Frequency and Transparency: The NER Pulse is published every Tuesday at 8:15 a.m., providing 12 weeks of historical data to ensure accurate estimates of real-time employment trends, thereby enhancing market confidence in employment data.
- ADP's Mission and Impact: ADP Research aims to enhance workplace productivity through data-driven insights, with over 1.1 million clients relying on its innovative solutions to tackle HR and payroll challenges, driving business growth.
See More
