U.S. private-sector employment rose by only 44,000 jobs in July, according to the ADP National Employment Report—the smallest monthly gain in six months and the latest data point confirming a structural deceleration in hiring.
The July figure extends a sharp downward trend. Private employers added 98,000 positions in June, down from 122,000 in May. June's total also missed analyst expectations of roughly 118,000—a consistent pattern of underperformance that points to more than temporary volatility.
Small businesses drove what hiring did occur in June. Firms with fewer than 50 employees added 53,000 jobs, with those employing one to 19 workers accounting for 38,000 of that total. Medium-sized companies—50 to 499 employees—contributed 29,000 positions. Large employers, those with 500 or more workers, added 25,000, indicating the slowdown is broad-based rather than concentrated in any single tier.
Sectorally, June's gains were narrow. Transportation and utilities added 15,000 jobs, financial activities contributed 14,000 and the information sector gained 7,000. Leisure and hospitality, by contrast, added only 2,000 jobs—its sixth consecutive month of weak hiring.
The Bureau of Labor Statistics will release its July jobs report tomorrow, incorporating government employment data and providing a fuller read on labor market conditions.
