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ADP National Employment Report: Private Sector Employment Increased by 172,000 Jobs in June

Private sector employment increased by 172,000 jobs from May to June, according to the June ADP National Employment Report. The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

June 2016 Report Highlights*

View the ADP National Employment Report Infographic at

Total U.S. Nonfarm Private Employment: 172,00

By Company Size

Small businesses: 95,000

  • 1-19 employees 52,000
  • 20-49 employees 43,000

Medium businesses: 52,000

  •  50-499 employees 52,000

Large businesses: 25,000

  • 500-999 employees 21,000
  • 1,000+ employees 4,000

By Sector

  • Goods-producing -36,000
  • Service-providing 208,000

Industry Snapshot

  • Construction -5,000
  • Manufacturing -21,000
  • Trade/transportation/utilities 55,000
  • Financial activities 2,000
  • Professional/business services 51,000

* Sum of components may not equal total, due to rounding

Franchise Employment**
Franchise jobs 40,700

**Complete details on franchise employment can be found here.

U.S. franchise jobs increased by 40,700 during the month of June.

Payrolls for businesses with 49 or fewer employees increased by 95,000 jobs in June, up from 84,000 in May. Employment at companies with 50-499 employees increased by 52,000 jobs, down from last month’s 60,000. Employment at large companies – those with 500 or more employees – increased by 25,000, up from May’s 23,000. Companies with 500-999 employees added 21,000 and companies with more than 1,000 employees added 4,000 this month.

Goods-producing employment was down by 36,000 jobs in June after an additional loss of 5,000 jobs in May. The construction industry lost 5,000 jobs, offsetting May’s gain of 9,000 jobs. Meanwhile, manufacturing lost 21,000 jobs after losing 3,000 the previous month.

Service-providing employment rose by 208,000 jobs in June, a stronger increase when compared to May’s 173,000 jobs. The ADP National Employment Report indicates that professional/business services contributed 51,000 jobs, up from May’s 47,000. Trade/transportation/utilities grew by 55,000, nearly twice that of the 27,000 jobs added the previous month. Financial activities added 2,000, down from last month’s gain of 13,000 jobs.

“Since the start of 2016, average monthly job creation has slightly dropped,” said Ahu Yildirmaz, vice
president and head of the ADP Research Institute. “Lackluster global growth, low commodity prices, and
an unfavorable exchange rate continue to weigh on U.S. companies, especially larger companies.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth revived last month from its spring slump. Job growth remains healthy except in the energy and trade-sensitive manufacturing sectors. Large multinationals are struggling a bit, and Brexit won’t help, but small- and mid-sized companies continue to add strongly to payrolls.”

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The May total of jobs added was revised down from 173,000 to 168,000.

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