US Private Sector Job Growth Slows Considerably in July, ADP Reports

• US private sector added 44,000 jobs in July, missing forecasts.
• This represents a significant slowdown from June’s 95,000 revised figure.
• Services sector drove gains, while goods-producing jobs declined.

The U.S. private sector added 44,000 jobs in July, according to the ADP National Employment Report released Wednesday. This figure fell significantly short of market expectations, which ranged between 70,000 and 75,000 additions, and marked a considerable slowdown from June’s downwardly revised 95,000 jobs. The report indicates a notable cooling in hiring momentum after a period of stronger gains. Most of the job creation occurred within the services sector, which saw an increase of 47,000 positions, largely driven by education and health services adding 36,000 jobs, while goods-producing companies experienced a decline of 3,000.