Private payrolls were stronger than expected last month with 242,000 jobs created per ADP’s Employment Report, although seasonal adjustments did add to the strength of this reading. While wage growth remains elevated, it slowed for both job-stayers and job-changers. ADP noted that “a particular area of weakness is with small establishments, which shed jobs every month since August 2022.”

What’s the bottom line? The leisure and hospitality sector once again led the way with 83,000 job gains. But these gains may soon be coming to an end. During the height of the pandemic, roughly 10 million leisure and hospitality jobs were lost. With the recovery well underway, we have seen significant job growth in this sector and we’re now approaching pre-pandemic levels. This means leisure and hospitality job gains may not bolster the overall total for much longer.