US Private Employers Add Meager 44,000 Jobs in July, Falling Short of Forecasts

According to ADP's latest report, US private employers added just 44,000 jobs in July, falling far short of economists' predictions for a gain of 75,000. The increase marked a significant slowdown from June's revised figure of 95,000 and suggests hiring momentum weakened at the start of the third quarter.

The services sector accounted for almost all of the new jobs, adding 47,000 positions during the month. Healthcare and education continued to dominate hiring, with 36,000 jobs added in July. Financial activities contributed 10,000 jobs, while professional and business services added 9,000 positions.

However, several industries posted declines. Trade, transportation, and utilities shed 8,000 jobs, while natural resources and mining lost 6,000. Manufacturing added only 2,000 jobs, and construction employment increased by just 1,000.

Wage growth remained stable, with employees who stayed with their current employers receiving average annual pay increases of 4.4%, unchanged from previous months. Workers who switched jobs enjoyed stronger salary gains, with annual wage growth accelerating to 7%, the fastest pace since August 2025, according to ADP Chief Economist Nela Richardson.

The report comes as policymakers at the Federal Reserve continue to weigh persistent inflation pressures against signs of softer employment growth. While most Fed officials have expressed confidence in the labor market, inflation remains their primary concern.