Private-sector employment increased by 324,000 jobs in July, according to the July ADP National Employment Report. The report is produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
Service-providing jobs increased by 303,000 during July, compared with 373,000 jobs added in June. The professional/business services sector added the fewest jobs, at 5,000, reclaiming the 5,000 jobs lost the month before. The education/health services sector added 23,000 jobs, compared with 74,000 jobs added in June. The leisure/hospitality sector gained 201,000 jobs, compared with 232,000 jobs gained in June.
The Northeast region of the country added the most jobs, at 276,000; the South, by comparison, lost 144,000 jobs in July.
Small establishments (49 or fewer workers) added 237,000 jobs in July; large establishments (500 or more employees) lost 67,000 jobs.
“The economy is doing better than expected and a healthy labor market continues to support household spending,” ADP Chief Economist Nela Richardson said in a statement. “We continue to see a slowdown in pay growth without broad-based job loss.
Annual pay increases
Overall, annual pay was up 6.2% year over year, according to the report.
People who stayed in their positions saw a year-over-year pay increase of 6.2%. This percentage marked the slowest pace of gains since November 2021, ADP noted. For job-changers, pay growth slowed to 10.2%.
By sector, those who stayed in their jobs in the professional/business services sector saw a median change in annual pay of 6%; education/health services sector job-stayers, 6.7%; and those in the leisure/hospitality sector, 7.2%.
The median change in annual pay for job-stayers was highest for medium-sized firms — companies with 50 to 499 positions. Pay increased 6.4% at companies with 50 to 249 jobs and 6.2% for firms with 250 to 499 workers. The median change in annual pay for companies with 500 or more employees was 6.2%.
See more pay insights here.
