What Does the June 2025 Job Reports Actually Mean for A Small Business?
Every month, national job reports make headlines with big numbers and trends. But HR leaders and small business owners – especially those with under 100 employees – often struggle to see what those reports mean for their own companies.
The June 2025 U.S. jobs report is a prime example. Below we break down the latest employment data and explain its effects (and limits) for Main Street businesses.
The Private Sector is Weaker Than You Think
According to the Bureau of Labor Statistics, the U.S. economy added 147,000 jobs in June 2025 but nearly half of June’s job gains came from government hires, while private-sector job growth was the weakest in eight months reuters.com.
In fact, private payrolls rose by just 74,000 (far below recent averages) as businesses faced economic headwinds reuters.com. Key industries like health care and construction added jobs, but sectors such as manufacturing and retail saw minimal or negative changes reuters.com.
Small Businesses Feel a Different Impact
For small businesses, the headline numbers can be misleading. While the overall economy added jobs, the smallest companies have seen much less of that growth – or even declines. For instance, ADP’s payroll data shows that small establishments (under 50 employees) shed a net 47,000 jobs in June mediacenter.adp.com, even as large companies (500+ employees) added about 30,000 mediacenter.adp.com.
This suggests many small employers have pulled back or paused hiring in recent months. Indeed, the Paychex Small Business Employment Watch index held virtually flat (99.65 in June) paychex.com, indicating steady but stagnant employment among firms with under 50 workers. Surveys also report that businesses are reluctant to add staff unless absolutely necessary reuters.com – a sign of caution on Main Street despite the positive national numbers.
Labor Shortages and Rising Wages
Despite a cooler overall job market, small businesses continue to face acute hiring challenges. A June survey by the National Federation of Independent Business (NFIB) highlights that:
36% of small business owners had job openings they could not fill nfib.com.
86% of those trying to hire reported few or no qualified applicants for their positions nfib.com.
A net 33% of owners increased pay in June to attract or retain workers nfib.com (the highest share seeing compensation hikes since early 2020).
What It All Means for Small Businesses
Overall, the latest jobs report sends mixed signals. For small businesses under 100 employees, it confirms that while the economy is still growing, the benefits aren’t evenly distributed.
Continued low unemployment means competition for good workers remains intense, so recruitment and retention will stay challenging. Small firms should focus on strategies to attract and keep talent – offering competitive pay, training, and flexible benefits – to navigate this tight labor market.
Overall, the slowdown in job growth is a reminder to plan cautiously for the coming months.
Sources: Official Bureau of Labor Statistics report, ADP National Employment Report, Paychex Employment Watch, and NFIB Small Business Jobs Survey
