The private sector added 44,000 jobs in July according to the latest data from the ADP National Employment Report. This measure, produced in collaboration with the Stanford Digital Economy Lab, analyzes anonymized payroll information from more than 26 million employees across the United States. While hiring activity showed varied results across different sectors and regions, pay data highlights a shift in how workers and employers navigate the current economic environment.
Service-providing industries drove the majority of the growth with 47,000 new positions. Education and health services led the way with 36,000 additions, while financial activities contributed 10,000. Conversely, goods-producing sectors saw a slight decline of 3,000 jobs. Regional trends were also uneven, with the Northeast adding 37,000 jobs while the Midwest experienced a loss of 9,000 positions.
Wage growth remains a primary focus of the report. Pay for employees who stayed in their current positions rose by 4.4 percent compared to last year. More significantly, compensation for those who switched jobs accelerated to 7 percent, marking the fastest year-over-year increase in nearly 12 months. Dr. Nela Richardson, chief economist at ADP, noted that job-changers display high sensitivity to economic conditions, and their pay increases suggest ongoing supply constraints in specific segments of the labor market.
Business size also played a role in the monthly figures. Small establishments added 23,000 jobs, followed by large firms with 13,000 additions and medium firms contributing 8,000. These figures offer a high-frequency look at the labor market, providing insight into hiring patterns as employers adjust to shifting conditions. The full report and detailed interactive charts are available on the official ADP employment report website.