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

Rhea-AI Summary

ADP (NASDAQ:ADP) released its June 2025 National Employment Report, revealing a decline of 33,000 private sector jobs, while annual pay increased 4.4% year-over-year. The job losses were primarily concentrated in professional/business services (-56,000) and education/health services (-52,000), though some sectors showed gains, including leisure/hospitality and manufacturing (+32,000 each).

The report, based on payroll data from over 25 million U.S. employees, showed job-changers' pay growth at 6.8%, down from 7.0% in May. While layoffs remain rare, employers showed hesitancy in hiring and replacing departing workers. By establishment size, small businesses lost 47,000 jobs, medium establishments decreased by 15,000, while large establishments gained 30,000 jobs.

Positive

• Annual pay growth remained steady at 4.4% for job-stayers
• Job-changers continue to see higher wage growth at 6.8%
• Layoffs remain rare despite job losses
• Leisure/hospitality and manufacturing sectors each added 32,000 jobs
• Large establishments (500+ employees) gained 30,000 jobs

Negative

• Overall private sector employment declined by 33,000 jobs
• Professional/business services lost 56,000 jobs
• Education/health services shed 52,000 jobs
• Small businesses lost 47,000 jobs
• May employment gains were revised down from 37,000 to 29,000

News Market Reaction – ADP

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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.

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

ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are trademarks of ADP, Inc. All other marks are the property of their respective owners.

Copyright © 2025 ADP, Inc. All rights reserved.

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SOURCE ADP, Inc.

FAQ

How many private sector jobs were lost in June 2025 according to ADP?

According to the ADP National Employment Report, the private sector lost 33,000 jobs in June 2025.

What was the annual pay growth rate for job-stayers in June 2025?

Job-stayers saw an annual pay growth rate of 4.4% in June 2025, slightly down from 4.5% in May.

Which sectors showed the biggest job losses in ADP's June 2025 report?

The biggest job losses were in professional/business services (-56,000 jobs) and education/health services (-52,000 jobs).

How did different-sized businesses perform in ADP's June 2025 employment report?

Small businesses lost 47,000 jobs, medium establishments decreased by 15,000, while large establishments (500+ employees) gained 30,000 jobs.

What was the pay growth rate for job-changers in June 2025?

Job-changers experienced a pay growth rate of 6.8% in June 2025, slightly down from 7.0% in May.

How many employees does ADP's employment report data cover?

The ADP National Employment Report is based on actual payroll data from more than 25 million U.S. employees.