Private sector job growth in June surpasses expectations, signaling strength in US labor market

Private sector job growth in the US unexpectedly surged by 497,000 in June, more than double the predicted gain, according to the ADP National Employment Report. This marks the largest one-month gain in over a year and indicates a tight labor market despite higher interest rates. Wages continued to moderate, with annual pay rising 6.4% in June. The majority of job gains were in the service-providing sector, particularly in leisure and hospitality, while manufacturing saw significant losses. Medium and small businesses led the way in hiring, reversing previous struggles. The official June jobs report from the Labor Department is expected to be released on Friday.