US Private Sector Adds 44,000 Jobs in July, Far Below Expectations: ADP

July’s Job Growth Less Than Half of June’s, Rising by Only 44,000
Education and Healthcare Services Lead Employment Gains
Wages for Job-Changers Surge to Highest Level in 11 Months

Private sector job growth in the United States slowed significantly in July. However, wage growth for workers who changed jobs reached its highest level in 11 months.

On August 5 (local time), Automatic Data Processing (ADP), a US employment information company, announced that private-sector employment in the US increased by 44,000 jobs in July compared to the previous month. This figure falls short of the market expectation of 75,000 jobs compiled by Dow Jones. The increase in private sector employment for June was also revised downward to 95,000 from the previously reported 98,000.

By industry, the service sector led overall job growth with an increase of 47,000 jobs. Employment in education and healthcare services grew by 36,000, while financial activities added 10,000 jobs, professional and business services increased by 9,000, and the information sector saw an uptick of 5,000 jobs.

On the other hand, employment in leisure and hospitality decreased by 11,000 jobs, and the trade, transportation, and utilities sector shed 8,000 jobs. Jobs in the goods-producing sector decreased by 3,000. Employment in natural resources and mining declined by 6,000, whereas manufacturing and construction added 2,000 and 1,000 jobs, respectively.

By company size, small businesses with fewer than 50 employees increased employment by 23,000. Medium-sized businesses and large enterprises added 8,000 and 13,000 jobs, respectively.

For employees who stayed with their current employers, wage growth remained steady at 4.4% compared to a year earlier, the same as the previous month. The wage growth rate for job-changers rose to 7.0%, marking the highest level since August of last year.

Nela Richardson, chief economist at ADP, said, "Job-changers are highly sensitive to real-time economic conditions," adding, "Their rapid wage growth indicates that labor supply constraints persist in parts of the job market." She went on to say, "As employers respond to changing macroeconomic conditions, even typical hiring patterns are evolving."

This content was produced with the assistance of AI translation services.