Private sector hiring slows sharply in July

ADP says US economy added 330,000 private-sector jobs in July

U.S. private sector job growth slowed sharply in July amid an uptick in new COVID-19 infections. 

The U.S. economy added 330,000 private sector jobs last month, a decline from the downwardly revised 680,000 jobs gained in June, according to the ADP National Employment Report released Wednesday. Analysts surveyed by Refinitiv were expecting the addition of 695,000 jobs. 

"The labor market recovery continues to exhibit uneven progress, but progress nonetheless," said Nela Richardson, chief economist at ADP. "Bottlenecks in hiring continue to hold back stronger gains, particularly in light of new COVID-19 concerns tied to viral variants." 

The service sector added 318,000 jobs last month. Within services, the leisure and hospitality sector continued to pace the gains, adding 139,00 new workers last month. However, that was down from the 332,000 jobs added in June. Hiring in education and health services (+64,000); professional and business services (+54,000); and trade, transportation and utilities (+36,000) remained strong, while job losses in information services (-1,000) continued. 

Goods-producing sectors added a total of 12,000 jobs, led by manufacturing (+8,000). Last month, goods producers hired 68,000 new workers.  

Job growth was pretty evenly distributed across small-, medium- and large-sized businesses. 


The ADP report comes ahead of Friday's July nonfarm payrolls report. The Labor Department is expected to say the U.S. economy added 845,000 jobs last month, according to economists surveyed by Refinitiv. The economy gained 850,000 jobs in June.