Hiring in the US private sector lost momentum again during July. The most recent ADP report showed that job creation fell short of analyst expectations, with the health sector primarily responsible for the growth recorded during the month.
The payroll processing company reported that private companies added 44,000 jobs in July, a figure adjusted for seasonal factors. The result was lower than the 95,000 jobs reported in June, a figure that was also revised downward, and was also below the projection of 75,000 jobs expected by economists consulted by Dow Jones.
The growth came exclusively from the services sector, which added 47,000 jobs. In contrast, goods-producing industries recorded a net loss of 3,000 jobs.
Within the services, education and health sector, it led hiring with 36,000 new positions. Financial activities added 10,000 workers and professional and business services added 9,000. The other services category recorded an increase of 6,000 jobs.
On the other hand, commerce, transportation and public services lost 8,000 jobs, while natural resources and mining reduced its workforce by 6,000 jobs. Manufacturing added just 2,000 workers and construction added another 1,000.
The report also notes that companies of all sizes participated in hiring, although companies with fewer than 50 employees led job creation by generating 23,000 new positions during July.
Regarding salaries, ADP indicated that those who remained in the same job received an average annual increase of 4.4%. On the other hand, workers who changed jobs obtained an increase of 7%, the highest level since August 2025.
“Job changers are highly sensitive to real-time economic conditions, and their rapid wage growth implies supply constraints in some sectors of the labor market,” said Nela Richardson, chief economist at ADP. “Meanwhile, typical hiring patterns are changing as employers react to changing macroeconomic conditions.”
July's performance represents the lowest monthly growth in private employment since January and precedes the publication of the official report from the Bureau of Labor Statistics (BLS), scheduled for two days later.
Economists consulted by Dow Jones estimate that the non-farm payrolls report will show the creation of 83,000 jobs during July, compared to the 57,000 registered in June. They also predict that the unemployment rate will remain at 4.2%, a figure that will be closely followed by the markets and by the Federal Reserve (Fed), which continues to evaluate the evolution of the labor market and inflation before making new decisions on interest rates.
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