US private sector employment declines for first time since March 2023 — ADP

According to Wednesday's ADP National Employment Report, US private sector employment fell by 33,000 jobs last month. This marks the first decline since March 2023. Economists surveyed by Reuters had expected an increase of 95,000 jobs.

The US Bureau of Labor Statistics (BLS) will soon release its June employment report. However, agency experts note there is no correlation between ADP’s data and the official figures.

The decline in jobs stems from American trade policy uncertainty. However, companies are not yet resorting to layoffs, which is helping support the labor market.

Analysts at Challenger, Gray & Christmas state that without a strong economic boost, US hiring could stay slow through the end of the year.

Reuters experts forecast that government data will show a 105,000 increase in jobs for June. Total nonfarm payroll employment is expected to rise by 110,000, while the unemployment rate may edge up from May's 4.2% to 4.3% in June.