US Private Sector Hiring Slows Sharply in July with Only 44,000 Jobs Added
Key Facts
Amid mounting concerns over a cooling labor market, the ADP National Employment Report revealed a sharp deceleration in US private sector hiring for July. Private companies added only 44,000 jobs, significantly missing market expectations and falling from a revised 95,000 in the previous month. This slowdown indicates a softening economic backdrop, with job gains largely concentrated in healthcare while goods-producing industries experienced net losses.
While hiring slowed, annual pay increased by 4.4% year-over-year according to ADP data, suggesting that wage growth remains sticky despite the cooling demand for labor. This labor data arrives alongside mixed global economic signals; per market data, the Eurozone reported a 1% year-over-year GDP growth rate on July 30, 2026, while Russia's unemployment rate held steady at 2.2% during the same period.
Investors are now weighing how this hiring slump will influence future monetary policy, following the Fed's decision to maintain interest rates at 3.75% on July 29, 2026.
Latest Updates · 1
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Update: This slowdown marks the weakest job growth since January, reflecting a shift in typical hiring patterns according to ADP's chief economist. Despite the overall cooling, wage growth for job-switchers accelerated to its strongest pace in nearly a year, adding a new layer of complexity to the inflation outlook.