Private sector added 44,000 jobs in July, below expectations, ADP says

• Education and health services led job creation with 36,000 positions, while leisure and hospitality lost 11,000 jobs
• Pay gains for workers changing jobs accelerated to 7% year-over-year, the largest increase since August 2025, indicating supply constraints in parts of the labor market
• Small businesses (fewer than 50 employees) added 23,000 jobs, outpacing large businesses with 500+ employees which added only 13,000

Summary: ADP July Jobs Report Falls Short of Expectations

Key Figures:

The U.S. private sector added just 44,000 jobs in July, according to ADP's latest report, significantly missing economists' expectations of 70,000 jobs. This represents a sharp decline from June's revised figure of 95,000 payrolls.

Sector Performance:

Education and health services led job creation with 36,000 positions added, followed by financial activities (+10,000), professional and business services (+9,000), and other services (+6,000). Information, manufacturing, and construction sectors added minimal positions (5,000, 2,000, and 1,000 respectively).

Job losses occurred in leisure and hospitality (-11,000), trade, transportation and utilities (-8,000), and natural resources and mining (-6,000).

Company Size Breakdown:

• Large businesses (500+ employees): +13,000 jobs
• Medium businesses (50-499 employees): +8,000 jobs
• Small businesses (under 50 employees): +23,000 jobs

Wage Growth:

Workers remaining in their current roles saw 4.4% year-over-year pay increases, while job-changers experienced accelerated wage growth of 7%—the highest increase since August 2025.

Market Implications:

ADP Chief Economist Nela Richardson noted that "job-changers are highly sensitive to real-time economic conditions," with rapid pay growth indicating supply constraints in certain labor market segments. The weak hiring figures suggest employers are adjusting to shifting macroeconomic conditions, potentially signaling labor market softening despite persistent wage pressures in specific sectors.