US private jobs add 44,000 in July, below forecasts

Private sector job growth in the United States slowed sharply in July, according to a key report released on Wednesday, August 5, 2026. Payroll processing firm ADP said private employment increased by 44,000 jobs last month, the smallest gain since January and well below economists' forecasts, which ranged from 68,000 to 75,000. The June figure was revised downward to 95,000.

The report indicates a broad cooling in hiring momentum. All net job gains came from the service-providing sector, which added 47,000 positions, while goods-producing industries shed 3,000 jobs. Within services, education and health services led with 36,000 new roles. Other gainers included financial activities and professional and business services. Losses were recorded in leisure and hospitality, trade, transportation, and utilities.

The data also revealed a split in wage growth. Pay for workers who stayed in their jobs rose 4.4% year-over-year. However, those who changed jobs saw their pay jump 7% compared to a year ago, the largest such increase since August 2025. ADP Chief Economist Nela Richardson said the rapid pay growth for job-changers implies supply constraints in parts of the labor market, while...