The ADP National Employment Report revealed a surprising decline of 33,000 private-sector jobs in the U.S. for June 2025, marking the first employment drop since March 2023. This figure significantly underperformed economists’ expectations, which had forecasted a gain of 110,000 jobs.  

Nela Richardson, Chief Economist at ADP, noted, “Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month. Still, the slowdown in hiring has yet to disrupt pay growth.”  

By industry, Professional and Business Services and Education and Health Services met the highest decline with 56,000 and 52,000, respectively. Total payroll for services declined by 66,000, while goods-producing industries such as manufacturing, construction, and mining capped a 32,000 net increase.  

Small-scale establishments with up to 20 employees saw more job losses in June than large businesses. Small establishments took the hit, contracting by 29,000, while large establishments rose by 30,000.  

In a separate report, Challenger, Gray & Christmas reported 47,999 job cuts by U.S.-based employers in June 2025. Economic and market conditions were cited as the primary reasons, accounting for 22,869 cuts.  

This unexpected downturn in private-sector employment signals potential caution among employers, despite steady wage growth, and may prompt closer scrutiny from policymakers and investors.