July private-sector payrolls rise by 44,000, falling short of forecasts

ADP reported that U.S. private-sector employers added 44,000 jobs in July, a figure well below economists’ estimate of 70,000.

According to its latest report, ADP found that private-sector firms created 44,000 positions in July, missing the consensus forecast of 70,000 and trailing the prior month’s revised increase of 95,000. Chief economist Nela Richardson explained that the swift pay growth for workers who change jobs reflects supply constraints in certain labor segments, and that employers are modifying hiring behavior in response to evolving macro-economic conditions.

The strongest hiring came from education and health services, which added 36,000 jobs, followed by financial activities (10,000), professional and business services (9,000) and other services (6,000). Information, manufacturing and construction contributed modest gains, while leisure and hospitality lost 11,000 jobs, trade, transportation and utilities shed 8,000, and natural resources and mining shed 6,000. Larger firms (500+ employees) added 13,000 jobs, mid-size firms (50-499) added 8,000, and small establishments (under 50) added 23,000.