July Job Growth Report

ADP, a payroll processing company, reported on Wednesday that private sector employment grew by just 44,000 jobs in July.

This number fell short of the anticipated increase of 70,000 and came in well below the revised figure of 95,000 jobs added in June.

Nela Richardson, ADP’s chief economist, noted that “Job changers are highly sensitive to real-time economic conditions, and their rapid wage growth suggests supply constraints in some parts of the labor market.” She also pointed out that standard employment patterns are shifting as employers adapt to the evolving macroeconomic landscape.

Industries Leading Job Creation

According to the ADP report, education and health services were the primary contributors to job growth in July, adding 36,000 jobs. Financial activities increased by 10,000 jobs, professional and business services by 9,000, and other services saw a boost with 6,000 new positions.

In contrast, the information sector only added 5,000 jobs, while the manufacturing and construction sectors contributed 2,000 and 1,000 jobs respectively. On the downside, sectors like leisure and hospitality, trade, transportation, utilities, and natural resources experienced job losses of 11,000, 8,000, and 6,000 respectively.

Large firms with over 500 employees accounted for 13,000 of the job additions, while those with 50 to 499 employees increased by 8,000. Smaller establishments, employing fewer than 50, added 23,000 jobs.

Interestingly, salaries for workers who remained in their positions saw a rise of 4.4% year-on-year. Meanwhile, those who switched jobs experienced a higher wage growth rate of 7%, marking the most significant year-on-year increase since August 2025.