July Employment Trends
Private sector employers added 44,000 jobs in July, according to the latest ADP National Employment Report released August 5, 2026. This monthly figure represents the pace of hiring across the United States. ADP collects this data through anonymized payroll records from over 26 million workers. The report is produced in partnership with the Stanford Digital Economy Lab.
While hiring activity remains positive, specific sectors show notable shifts. Service-providing industries accounted for nearly all of the growth, adding 47,000 positions. Conversely, goods-producing industries shed 3,000 jobs. The data suggests that employers are adjusting their staffing levels to match current economic demand.
Pay Growth and Workforce Dynamics
Pay data reveals clear trends for those currently in the workforce. Annual pay for job-stayers increased by 4.4 percent compared to the previous year. This growth rate remains consistent with recent months. However, the situation for job-changers is distinct. Their annual pay growth hit 7 percent in July, marking the highest increase since August 2025.
Dr. Nela Richardson, chief economist at ADP, noted that job-changers display high sensitivity to economic conditions. Their rapid pay growth points to supply constraints within specific segments of the labor market. Employers are currently re-evaluating their hiring practices as they navigate these macro-economic shifts. These trends offer a high-frequency look at how employees are moving through the economy.
Regional and Industry Performance
Geographic performance varied widely across the country in July. The Northeast led all regions with 37,000 new jobs added, driven by gains in the Mid-Atlantic and New England. The South added 9,000 jobs, while the West added 7,000. The Midwest reported a decline of 9,000 positions, pulled down largely by losses in the East North Central area.
Industry results also show a divide in activity. Education and health services led the way with 36,000 new positions. Financial activities added 10,000 jobs, and professional services added 9,000. In contrast, leisure and hospitality businesses reduced their staff by 11,000. Trade, transportation, and utilities also saw a decrease of 8,000 jobs during the same period.
Contextualizing the Labor Market
This report provides a window into the broader US labor market. The June job addition total was revised downward from 98,000 to 95,000, confirming that the cooling trend in hiring has persisted for several months. These figures provide a baseline for market analysts who monitor the relationship between payroll growth and inflation.
Economic observers watch these reports to determine the health of the labor supply. The contrast between stable pay for those who stay in their roles and high pay for those who leave suggests that competition for specialized talent remains a factor. Market participants can expect further clarity when the next report arrives on September 2, 2026. This ongoing series serves as a primary tool for tracking private sector output.