Private sector hiring cooled in July. According to new data from ADP, private companies added 44,000 workers last month, falling short of the 75,000 jobs anticipated by the market. This result is a decline from the 95,000 jobs added in June and marks the slowest growth rate since January.
Healthcare and education remain the primary drivers of employment, accounting for 36,000 of the new positions. In contrast, the goods-producing sector shed 3,000 jobs, while trade, transportation, and utilities also saw a decrease of 8,000 roles. Overall, the services sector provided nearly all the growth for the month.
Wage trends show a distinct split between workers who stay in their current positions and those who move to new ones. Employees remaining in their jobs saw annual pay growth of 4.4 percent. Meanwhile, job switchers received a 7 percent pay increase, which ADP’s chief economist, Nela Richardson, points to as a sign of supply constraints within the labor market.
The broader economic context remains focused on these hiring shifts as the Federal Reserve weighs potential interest rate moves. Markets are currently watching for the official Bureau of Labor Statistics nonfarm payrolls report due on Friday to provide a more complete view of the national unemployment picture.