ADP: US private sector adds just 44,000 jobs in July, well below forecasts

Published Aug 5, 12:15 PM UTC

Private sector hiring in the US slowed sharply in July, with ADP reporting only 44,000 new jobs, well below the 75,000 forecast and down from a revised 95,000 in June. Virtually all gains came from services, led by education and health services (36,000 jobs). Goods-producing industries lost 3,000 jobs. Pay growth for job stayers held at 4.4% annually, while job switchers saw a 7% increase, the highest since August 2025. ADP chief economist Nela Richardson noted that job-changers' rapid pay growth implies supply constraints in parts of the labor market. The report precedes the official Bureau of Labor Statistics nonfarm payrolls report, which economists expect to show 83,000 new jobs and unemployment steady at 4.2%. The Federal Reserve has kept interest rates steady, with markets betting on a possible hike if inflation does not improve.