Job growth in the private sector slowed in July for the fourth consecutive month, with the addition of 122,000 jobs, according to the monthly ADP National Employment Report Economy Lab report, published Wednesday.
The publication, which analyzes the payroll transactions of more than 25 million US workers, is produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” ADP Chief Economist Nela Richardson said in a press release issued in conjunction with the report. “If inflation goes back up, it won’t be because of labor.”
The health/education sector fared better than most sectors, with 22,000 jobs added last month compared with 9,000 jobs added in June.
Of the jobs added in July, most (61,000) were created in trade, transportation and utilities. Leisure / hospitality added 24,000; financial activities, 14,000; and other services, 19,000.
Professional / business services saw a decrease of 37,000 jobs in July; information, 18,000.
Medium-sized firms (those with 50 to 499 employees) gained the largest number of jobs in July, 70,000. Large companies (those with 500 or more employees) gained 62,000 jobs. Small companies (with one to 49 employees) saw an increase of 37,000 jobs.
Year-over-year pay gains for job-stayers were 4.8% in July. That’s down from 4.9% the previous month, marking the slowest pace of growth in three years, according to ADP. For job-changers, pay gains slowed to 7.2% from 7.7% in June.
