As the economy continues to recover from the recent downturn, there was some good news last month as companies added 497,000 jobs—more than double the 228,000 gain that economists surveyed by Refinitiv predicted.

Still dealing with the rising interest rates from the Fed, the job growth and increased annual pay, which rose 6.4% last month, down from 6.6% in May, signals a potential shift in the economy.

“Consumer-facing service industries had a strong June, aligning to push job creation higher than expected," said ADP chief economist Nela Richardson. "But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge."

However, the manufacturing information, and financial sectors saw major losses with 42,000, 30,000 and 16,000 jobs, respectively. Small and medium businesses hired the most with a combined total of almost 400,000.

As the hiring continues, employees quitting their jobs has started to subside. According to The Wall Street Journal, “[quit rates] averaged 2.5% from March to May, down from 3% as recently as April 2022, and only slightly higher than the prepandemic level.”