Private-sector jobs decline; Microsoft adds to workforce cuts; Mortgage applications rise

U.S. private sector employers posted a drop of 33,000 jobs in June from the prior month as hiring showed continued signs of slowing, according to the latest monthly tracking by payroll services provider ADP and Stanford University’s Digital Economy Lab.

Other analysts had expected a gain of more than 100,000 private jobs for June. Based on anonymized payroll data of more than 25 million employees of ADP client firms, the ADP-Stanford report also showed annual pay growth slowing but still posting a healthy average of 4.4%.

“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” ADP Chief Economist Nela Richardson said in a statement Wednesday. “Still, the slowdown in hiring has yet to disrupt pay growth.”

The report showed leisure and hospitality leading monthly job growth at 32,000, as manufacturing gained 15,000, trade and transportation added 14,000 and construction gained 9,000. Notable June decliners included professional business support services at 56,000, education and health services at 52,000 and financial services at 14,000.

The ADP-Stanford report is considered a preview of monthly government reporting on nonfarm public and private employment, with the Labor Department scheduled to release June data including the unemployment rate on July 3. The May U.S. jobless rate was 4.2%, remaining low by historical standards. 

Tech giant Microsoft announced another round of job reductions as it seeks to cut costs and streamline operations, with the latest affecting about 9,000 employees or about 4% of its global workforce.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” Microsoft said in a statement Wednesday. The Redmond, Washington-based company has made several rounds of cuts over the past two years, the latest aimed at reducing layers of management in its gaming, software and other divisions.

This week’s reductions come after Microsoft announced 6,000 cuts in May, and marks its largest reduction round since cutting 10,000 workers in 2023. State notification filings in Washington showed the latest global cuts will include at least 830 workers in Redmond and Bellevue, taking effect starting Aug. 31.

Other firms cutting jobs this year have included Amazon, Meta, Intel and Google. U.S.-based tech companies announced more than 74,000 reductions in the first five months of 2025, up 35% from the year-earlier period, according to outplacement firm Challenger, Gray & Christmas. 

Mortgage applications increased 2.7% from a week earlier for the week ended June 27, aided in part by declining interest rates, the Mortgage Bankers Association reported Wednesday. It’s the latest among mixed signals for U.S. housing sales and development, which have generally been sluggish so far in 2025.

“Purchase activity was essentially flat over the week, as overall uncertainty continues to hold homebuyers out of the market,” Joel Kan, the trade group’s deputy chief economist, said in a statement. “However, purchase activity still remains 16% higher than last year’s pace.”

The banker group gauges the momentum of mortgage application volume but does not report the number of applications. The group said 30-year fixed mortgage rates recently declined to their lowest level since April at an average 6.79%, helping to boost new-purchase applications 0.1% from the prior week as refinance applications increased 7%.