FX.co ★ US Private Sector Cuts Jobs in June

In June 2025, private sector employment in the United States experienced a reduction of 33,000 positions, marking the first decline since March 2023. This figure contrasts with a downwardly revised decrease of 29,000 jobs in May and falls significantly short of the anticipated employment growth forecast of 95,000. The service-providing sector was particularly impacted, losing 66,000 jobs, with substantial cuts in professional and business services (down by 56,000), education and health services (down by 52,000), and financial activities (down by 14,000). Conversely, job gains were observed in leisure and hospitality (up by 32,000), trade, transportation, and utilities (up by 14,000), and the information sector (up by 5,000). The goods-producing sector demonstrated some resilience, adding 32,000 jobs overall, which included 15,000 in manufacturing, 9,000 in construction, and 8,000 in natural resources and mining. Moreover, the annual pay growth for employees who remained in their jobs slightly decreased to 4.4% in June from 4.5% in May. For those who changed jobs, wage growth was 6.8% in June, which is a marginal dip from the previous 7%. Dr. Nela Richardson, the chief economist at ADP, commented, "Although layoffs remain uncommon, there is a noticeable hesitancy to hire and a reluctance to replace departing employees, resulting in last month's job losses. Nevertheless, the deceleration in hiring has not yet adversely affected wage growth."