June's non-farm payroll data exploded! The ADP report shows an increase of 497,000 jobs in the United States, more than double the expected figure.

July, as the prospect of a Fed rate hike remains uncertain. The labor market once again delivers an explosive "surprise," causing a sharp increase in hawkish expectations. On Thursday, July 6th, the US ADP Employment Report showed that the number of private sector jobs in the US increased by 497,000 after seasonal adjustment in June, more than double the market expectation of 225,000 and far exceeding the previous value of 278,000. This is the largest monthly increase since July 2022. However, the annual wage growth rate slowed down to 6.4% from 6.5% in May. Nela Richardson, Chief Economist at ADP, said: "Consumer-facing service industries performed strongly in June, driving job creation higher than expected. However, wage growth in these industries continues to weaken, and hiring may have peaked after a surge in the later stages of the cycle." Looking at different industries, the leisure and hospitality sector added 232,000 employees, leading the entire private sector, followed by the construction industry with an increase of 97,000 employees, and the trade, transportation, and utilities sector with an increase of 90,000 employees. Other industries that showed robust growth include education and health services (74,000), natural resources and mining (69,000), and "other services" category (28,000). At the same time, some industries experienced a decline in employment. The manufacturing sector lost 42,000 jobs, while the information sector lost 30,000 and financial activities lost 16,000. Overall, in the past month, the US service sector added 373,000 jobs, while the goods-producing sector added 124,000 jobs. In terms of scale, the majority of job growth came from small businesses with fewer than 50 employees, adding nearly 300,000 positions. Medium-sized companies with 50-500 employees contributed 183,000 jobs, while companies with over 500 employees saw a decrease of 8,000 positions. On Friday evening, the US Department of Labor will release the more closely watched non-farm payroll report. ADP employment report is known as "mini non-farm payroll". The employment situation reported by ADP can usually predict the changes in non-farm employment. (Updating)