The U.S. private sector unexpectedly lost jobs in June, marking a surprise contraction in employment, according to new figures released Wednesday by payroll provider ADP.
The data showed a net loss of 33,000 jobs last month, reversing a modest gain of 29,000 in May, which was itself revised downward from an earlier estimate of 37,000.
Economists had forecast a strong rebound with 95,000 new private sector jobs, making June’s negative print a notable deviation from expectations.
ADP’s Chief Economist, Dr. Nela Richardson, noted that while layoffs remain relatively uncommon, a cautious approach to hiring—combined with fewer employers backfilling open roles—contributed to the overall job decline.