Private-sector employers added 98,000 jobs in June, falling short of market expectations according to data released by ADP.
The report indicates that hiring activity slowed further in the second half of the second quarter, signaling persistent softness in the labor market despite earlier signs of stabilization.
The healthcare sector drove the majority of the hiring activity, while other industries showed muted demand.
This uneven distribution highlights the structural challenges facing broader private-sector employment, as non-healthcare sectors continue to struggle with weak hiring momentum.
The data adds to concerns about the labor market's resilience, with the consensus forecast having anticipated a stronger rebound.
Investors are likely to view this as a signal that the economic recovery remains fragile, particularly outside of the healthcare industry.