US Companies Added 44,000 Jobs In July, ADP Data Show

US companies added 44,000 private-sector jobs in July, marking the weakest monthly increase since the beginning of the year, according to data released by ADP Research. The figures indicate a slowdown in hiring momentum after a period of stronger job gains, although the labour market continues to show signs of stability amid ongoing economic activity.

According to the ADP report, released in collaboration with the Stanford Digital Economy Lab, private payroll growth fell from a revised increase of 95,000 jobs in June to 44,000 in July. The latest figure was below economists’ expectations, suggesting that businesses have become more cautious in adding new positions.

Despite the moderation in hiring, wage growth remained relatively strong, particularly for workers changing jobs. The report showed that job switchers experienced a 7 per cent increase in pay compared with a year earlier, marking the strongest pace of wage growth for this group in nearly a year. Employees who remained in the same roles recorded wage growth of 4.4 per cent.

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ADP chief economist Nela Richardson said job changers are closely linked to current economic conditions and that stronger wage gains among this group could indicate supply constraints in parts of the labour market. The report showed that financial activities and manufacturing sectors recorded stronger wage growth during the period.

The data also highlighted differences across industries, with education and health services adding 36,000 jobs, while leisure and hospitality companies reduced employment by 11,000 positions. Small businesses contributed more than half of the overall payroll increase, reflecting continued hiring activity among smaller employers.

The ADP report comes ahead of the US government’s monthly employment report, which includes both private and public-sector jobs. Economists expect the official report to provide further insight into the health of the labour market and could influence discussions around future Federal Reserve interest rate decisions as policymakers continue to monitor inflation and employment trends.

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