US Private Sector Employment Unexpectedly Declines

According to a report by Jinse Finance, economic uncertainty has unsettled employers, leading to the first decline in U.S. private sector employment in over two years last month. Based on the National Employment Report released by ADP, the U.S. saw a total decrease of 33,000 jobs in June, compared to an increase of 29,000 jobs in May. This marks the first reported drop in employment since March 2023. Economists surveyed by The Wall Street Journal had previously expected an increase of 100,000 jobs for the month. ADP Chief Economist Nela Richardson stated, "While layoffs remain rare, hesitation in hiring and reluctance to replace departing employees led to last month's decrease in employment." However, the economic slowdown has yet to affect annual wage growth, which rose by 4.4% in June, only slightly below May's 4.5% increase.