Jobs Fall 33k per ADP July 2, 2025

Employment at US companies fell in June for the first time in more than two years, reflecting a drop in services payrolls that may raise concerns about a more pronounced labor market slowdown. Private-sector payrolls decreased 33,000 last month after a downwardly revised 29,000 gain in May, according to ADP Research data released Wednesday.

None of the economists in a Bloomberg survey expected a decline. The sobering numbers came a day after Trump administration data showed job openings unexpectedly rose in May as firings declined. That report exceeded all estimates in a Bloomberg survey of economists. 

“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” Nela Richardson, chief economist at ADP, said in a statement.

The ADP report, based on payrolls covering more than 25 million US private-sector employees, also showed that wage growth cooled. Workers who changed jobs saw a 6.8% increase in pay, while those who stayed put saw a 4.4% gain. —David E. Rovella