ADP: private jobs rise 44,000

ADP said on August 5 that U.S. private employers added 44,000 jobs in July, a sharp slowdown from a revised 95,000 in June and the weakest monthly gain of 2026. The report, produced by ADP Research with Stanford’s Digital Economy Lab, landed two days before the Labor Department’s July employment report. Economists surveyed by Reuters had expected a larger increase in private payrolls, while CNBC reported a Dow Jones estimate of 75,000. ADP said annual pay growth was 4.4% for workers who stayed in their jobs and 7% for those who changed jobs. ### Where did the July hiring show up? Service-providing industries added 47,000 jobs in July, while goods-producing industries lost 3,000, ADP said. Healthcare and education led gains with 36,000 jobs, followed by financial activities with 28,000 and information with 9,000. Professional and business services lost 15,000 jobs, manufacturing lost 14,000 and natural resources and mining lost 10,000. (mediacenter.adp.com) ADP said small businesses with fewer than 50 employees added 12,000 jobs, medium-sized firms added 46,000 and large businesses lost 14,000. By region, the South added 66,000 jobs, while the Midwest lost 11,000, the West lost 7,000 and the Northeast lost 4,000. (mediacenter.adp.com) ### What did ADP say about the slowdown? Nela Richardson, ADP’s chief economist, said hiring and pay data were “broadly indicative of a healthy economy,” while adding that employers had become “more strategic and selective” in their hiring. The July report showed that selectivity more clearly in sector detail than in the headline alone, with healthcare-related categories accounting for most of the gains. (mediacenter.adp.com) CNBC reported that virtually all of the month’s net hiring came from healthcare-related sectors. Reuters, in coverage cited by Investing.com and other outlets, said the ADP series has often been a weak guide to the government’s payroll count. ### Why do traders and employers still watch a report with that track record? (mediacenter.adp.com) The ADP National Employment Report is based on anonymized payroll data covering more than 26 million U.S. private-sector employees, according to ADP. That scale gives markets and employers an early read on private hiring before the government’s broader report, even though month-to-month correlation with official payrolls can be uneven. (cnbc.com) Yahoo Finance reported that the ADP release came two days before the Bureau of Labor Statistics report for July. Reuters said economists it surveyed expected private employment to increase by 70,000 after June’s previously reported 98,000 gain. ### What does this mean for people looking for accounting work? (mediacenter.adp.com) July’s ADP data did not address recruiting directly, but it did show a slower hiring backdrop than in prior months. In that kind of market, employers tend to favor candidates who can contribute quickly to recurring work such as reconciliations, spreadsheet cleanup and monthly close support, according to the practical guidance in the source briefing accompanying this story. (finance.yahoo.com) That is an inference from the hiring data and the briefing, not a statement from ADP. Pay data in the report showed employers were still paying more for workers they chose to hire from outside. ADP said job-changers saw 7% annual pay growth in July, the fastest since August 2025, while pay for job-stayers held at 4.4%. (mediacenter.adp.com) ### What comes next after the ADP number? The Bureau of Labor Statistics is scheduled to release the July employment report on Friday, August 7. That report will include nonfarm payrolls, private payrolls, wage growth and the unemployment rate, and it is typically the labor-market release investors, employers and Federal Reserve officials weigh more heavily than ADP. (finance.yahoo.com) (mediacenter.adp.com)