ADP National Employment Report: Private Sector Employment Shed 33,000 Jobs in June; Annual Pay was Up 4.4%

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Jul 02, 2025, 08:15 ET

ROSELAND, N.J., July 2, 2025 /PRNewswire/ -- Private sector employment shed 33,000 jobs in June and annual pay was up 4.4 percent year-over-year, according to the June ADP National Employment Report^® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab"). The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

ADP Research Institute, logo (PRNewsfoto/ADP, Inc.)

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. As of January 2025, ADP's Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.

"Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month," said Dr. Nela Richardson, chief economist, ADP. "Still, the slowdown in hiring has yet to disrupt pay growth."

June 2025 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

JOBS REPORT

Private employers shed 33,000 jobs in June
Job losses in professional and business services, and education and health services led the decline. Leisure and hospitality, and manufacturing showed gains.

Change in U.S. Private Employment: -33,000

Change by Industry Sector
- Goods-producing: 32,000

Natural resources/mining 8,000
Construction 9,000
Manufacturing 15,000

- Service-providing: -66,000

Trade/transportation/utilities 14,000
Information 5,000
Financial activities -14,000
Professional/business services -56,000
Education/health services -52,000
Leisure/hospitality 32,000
Other services 5,000

Change by U.S. Regions
- Northeast: -3,000

New England -10,000
Middle Atlantic 7,000

- Midwest: -24,000

East North Central 4,000
West North Central -28,000

- South: 13,000

South Atlantic -21,000
East South Central 20,000
West South Central 14,000

- West: -20,000

Mountain -20,000
Pacific 0

Change by Establishment Size
- Small establishments: -47,000

1-19 employees -29,000
20-49 employees -18,000

- Medium establishments: -15,000

50-249 employees 12,000
250-499 employees -27,000

- Large establishments: 30,000

500+ employees 30,000

PAY INSIGHTS

Pay gains held steady in June
Year-over-year pay growth for job-stayers was little changed for June at 4.4 percent compared to 4.5 percent in May. Pay growth for job-changers was 6.8 percent in June, down slightly from 7.0 percent last month.

Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers 4.4%
- Job-Changers 6.8%

Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:

Natural resources/mining 4.5%
Construction 4.6%
Manufacturing 4.6%

- Service-providing:

Trade/transportation/utilities 4.2%
Information 4.1%
Financial activities 5.2%
Professional/business services 4.2%
Education/health services 4.6%
Leisure/hospitality 4.7%
Other services 4.2%

Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:

1-19 employees 2.7%
20-49 employees 4.1%

- Medium firms:

50-249 employees 4.7%
250-499 employees 4.8%

- Large firms:

500+ employees 4.8%

To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here.

* Sum of components may not equal total due to rounding.

The May total number of jobs added was revised from 37,000 to 29,000. The historical data file and weekly data for the previous month are available at https://adpemploymentreport.com/.

To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.

The July 2025 ADP National Employment Report will be released at 8:15 a.m. ET on July 30, 2025.

About the ADP National Employment Report^®The ADP National Employment Report is an independent measure of the change in U.S. private employment and pay derived from actual, anonymized payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research in collaboration with the Stanford Digital Economy Lab.

The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.

About the ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policymakers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.

About ADP (NASDAQ – ADP)
Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com

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SOURCE ADP, Inc.