He American labor market experienced a surprising contraction During June, the Employment Report of ADP revealed on Wednesday. About 33,000 non -agricultural jobs would have been lostcompared to the 29,000 that were created in May. It is the first monthly reduction since March 2023, when it was recorded a decrease of 53,000 jobs. It would be a consequence of the tariffs imposed by Donald Trump, some analysts raised.
The figures They contrast markedly with the expectations of economists Consulted by Bloomberg, who had predicted an increase of 98,000 jobs for the month. In turn, lTo review of May data was also downwardreducing 37,000 to just 29,000 created jobs, which reinforces the negative trend observed in the labor market.
The chief economist of ADP, Nela Richardsonhe explained that “although layoffs They are still rarehesitation to hire and the reluctant to replace the workers who leave led to losses of employment last month“
Sector and regional divergence
Most of the losses were concentrated in areas linked to professional and business services, with A net fall of 56,000 jobs. He was followed by the health and education sectors, which experienced a net loss of 52,000 positions. Financial activities also contributed down, with A drop of 14,000 jobs.
However, the contraction in the final balance was no greater product of The expansions observed in the sectors linked to the production of goods in industries such as manufacturing and mining. Together, the production positions of goods grew 32,000 in the month, while the payrolls for service roles fell 66,000 in general.
Segmented by region, The West and West of the United States registered the strongest contractions In June, decreasing 24,000 and 20,000 respectively. Meanwhile, the Northeast lost 3,000 jobs. The South was the only region that expanded employment payrolls in a net, with an increase of 13,000 positions.
The impact on small businesses
Another find was that The smallest companies tended to experience more employment losses this month than their largest counterparts. Specifically, ADP stressed that Companies with more than 500 employees registered the highest payroll growth of the monthwith an increase of 30,000. In comparison, companies with less than 20 employees They represented 29,000 lost jobs in net terms.
On that point, the Chief Economist of the RSM US LLP firm, Joseph Brusuelashe stated: “The June Employment Report of ADP reaffirms what many of us have been pointing out: small and medium -sized businesses, which do not have adequate financial depth to absorb price increases induced by tariffs, are reducing the hiring rate.”
For its part, the boss strategist for fixed income of the Financial Research Schwab Center, Kathy Jonesstated that the report “suggests that the labor market is softening”. However, he clarified that the US Labor Statistics Office (BLS) Office that will be published this Thursday “is more important” to have a broader panorama of the labor market.
Source: Ambito
