ADP says private-sector hiring slowed in June, pay rose 4.4 percent
Hiring slowed in June, but pay still rose 4.4 percent, keeping wage pressure alive for Target’s stores and supply chain.
Private-sector employment rose by 98,000 jobs in June, while annual pay increased 4.4 percent year over year. The gain fell short of economists’ expectations of roughly 118,000 and came after a revised 122,000-job increase in May, with hiring uneven across industries.
The biggest June gains were concentrated in services. Education and health services added 48,000 jobs, trade, transportation and utilities added 15,000, financial activities added 14,000 and other services added 8,000. Natural resources and mining lost 5,000 jobs, while leisure and hospitality added just 2,000. The report drew on payroll data from more than 26 million private-sector employees and was produced by ADP Research with the Stanford Digital Economy Lab.
Median pay gains for job-stayers were 4.4 percent, while job-changers saw 6.6 percent growth. Nela Richardson, ADP’s chief economist, said it is taking people longer to find work and that there are signs of labor-supply constraints in some industries, with the overall effect being a slowdown in job creation.
A softer hiring market does not automatically ease pressure on store staffing, fulfillment coverage or distribution labor if pay is still rising and competitors are still willing to pay more for movers. It can make recruiting easier at the margin, but it can also sharpen expectations around schedule stability, cross-training, and clear paths to promotion for team members who want to move from hourly roles into team leader and executive team leader tracks.
Target offers market-leading wages, insurance coverage, store discounts and education assistance, along with a 401(k) match up to 5 percent of pay with immediate vesting. Its Dream to Be program with Guild offers tuition-free or partially funded options, and more than 40,000 team members have enrolled since launch in September 2021. Target benefits materials list DailyPay earned-wage access, no-cost 24/7 virtual care and hourly pay ranges of about $15 to $24 depending on role and location.
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