Private employers added just 44,000 jobs in July, the smallest monthly gain in six months and well below what economists had expected. The number came in far short of the Dow Jones consensus forecast of 75,000 and fell sharply from a downwardly revised 95,000 in June.
According to Bloomberg, the figures come from ADP Research and were released Wednesday. The report covers only private payrolls and arrives two days before the Bureau of Labor Statistics releases its official nonfarm payrolls count for July. Economists surveyed by Dow Jones expect that count to show 83,000 hires, up from June's 57,000, with the unemployment rate holding at 4.2%.
All of July's net job growth came from the services sector, which added 47,000 positions. Goods-producing companies saw a decline of 3,000. Within services, education and health services led with 36,000 new jobs, continuing what CNBC described as a longstanding trend for that industry. Financial activities added 10,000, professional and business services contributed 9,000, and the other services category saw a gain of 6,000.
Not all sectors gained. Trade, transportation, and utilities lost 8,000 jobs. Natural resources and mining shed 6,000. Manufacturing added only 2,000 and construction added 1,000.
Small businesses led hiring by company size. Firms employing fewer than 50 people accounted for 23,000 new jobs, the largest share among employer categories.
On pay, workers who stayed in their jobs saw annual wage growth hold steady at 4.4%. Job switchers fared considerably better, with a 7% increase in pay, the largest since August 2025.
"Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market," ADP chief economist Nela Richardson said. "Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions."
MarketWatch noted the July figure represents another sign of a sluggish labor market in which hiring has been unusually soft. The monthly employment gain was the smallest since January, during a year in which the labor market has steadied after showing little progress in 2025.
Most Federal Reserve officials have expressed confidence in the overall jobs picture and have placed inflation concerns at the forefront of policy decisions. The Fed has kept its benchmark interest rate steady, though markets are betting on a hike before the end of the year if inflation data does not improve.
