Hiring at private companies slowed significantly in July, with most job growth driven by the health care sector, according to payrolls processing firm ADP’s report on Wednesday.
Overall, the increases were driven by the services sector, which gained 47,000 jobs, whereas goods-producing companies experienced a decrease of 3,000.
ADP chief economist Nela Richardson said, “Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market. Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions.”
Nonfarm private sector job growth for the month was 44,000, seasonally adjusted, which is lower than the revised June figure of 95,000.
The education and health services sector added 36,000 jobs, continuing a long-standing trend of strong employment growth in the industry. Financial activities increased by 10,000, professional and business services grew by 9,000, and the other services category gained 6,000.
Trade, transportation, and utilities lost 8,000, while natural resources and mining fell by 6,000. Manufacturing experienced a slight increase of 2,000, and construction added 1,000.
Pay gains remained steady at 4.4% annually for those who stayed in their jobs. Meanwhile, job switchers experienced a 7% increase, the highest since August 2025.
The monthly employment gain was the smallest since January in a year where the labor market has stabilized after making little progress in 2025.
By CEO NA Editorial Staff
