US Private Hiring Slows Sharply: Only 44,000 Jobs Added in July

Private companies added just 44,000 jobs in July, a clear slowdown from the revised 95,000 gain recorded in June and well below market expectations of around 70,000 to 75,000, according to the latest ADP Research data released Wednesday. The softer-than-expected figure points to cooling hiring momentum across the U.S. economy as businesses grow more cautious. Education and health services drove nearly all the growth with a solid 36,000 new positions, while goods-producing sectors shed 3,000 jobs overall. Leisure and hospitality also posted a notable decline of 11,000 positions during the month.

Wage trends offered a mixed picture. Pay for workers who stayed in their current jobs held steady at a 4.4 percent year-over-year increase, matching recent levels. However, those who switched jobs saw stronger gains, with wage growth accelerating to 7 percent — the fastest pace in nearly a year. The data arrives just ahead of Friday’s official Bureau of Labor Statistics employment report, which will provide a broader view of the labor market including government hiring.

Financial markets reacted with modest gains in S&P futures and mixed movements in bond yields following the release. The softer ADP print reinforces signs that the pace of job creation is moderating after stronger readings earlier in the year. Analysts will closely watch the upcoming official numbers for confirmation of whether this cooling trend is taking hold more broadly across the economy.