Hiring at U.S. businesses continued at a modest pace last month, new figures from payroll provider ADP show. June’s gains indicate that the labor market is healthier than supposed, but still seeing only a small pick-up in growth.

The U.S. added 163,000 new private jobs last month, a drop from last month’s downwardly revised total of 172,000 new jobs. Economists expected an increase of 120,000 new jobs in the ADP report.

The service industry brought the bulk of the new jobs, adding 148,000 workers to payrolls. Small- and mid-size businesses drove the growth, adding 86% of new jobs. ADP reports.

Read More: Forbes