US Private Sector Sheds 33,000 Jobs in June

U.S. private employers unexpectedly cut 33,000 jobs in June 2025, marking the first monthly decline since March 2023 and falling short of economists’ expectations of gains between 95,000 and 115,000. Job losses were concentrated in small- and medium-sized service-producing companies, with professional and business services shedding 56,000 jobs and education and health services losing 52,000, while large employers and sectors such as manufacturing and leisure/hospitality saw gains. Annual wage growth for job-stayers remained steady at 4.4%, and job-switchers saw a 6.8% increase. Layoffs remain rare, but employers are increasingly hesitant to hire or replace departing workers, signaling a broader hiring slowdown. Markets and economists are awaiting Thursday’s official Labor Department report for further signs of labor market softening, which could influence Federal Reserve interest rate decisions. Wall Street showed little immediate reaction, as the ADP report often differs from government figures.