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ADP Says U.S. Private Payrolls Rose 44,000 in July as Job-Changers’ Pay Accelerates to 7%

Rapid pay gains for workers who switch jobs point to localized labor supply constraints that could push employers to offer higher wages.

Overview

  • ADP reported a net gain of 44,000 private-sector jobs in July, with overall hiring driven by service industries while goods-producing employment edged down.
  • Service-providing sectors added 47,000 jobs with education and health services contributing 36,000 and leisure and hospitality losing 11,000 jobs.
  • Employment gains were uneven across the country and by firm size, with the Northeast adding 37,000 jobs, the Midwest losing 9,000, small firms (fewer than 50 employees) adding the largest share, and medium firms posting smaller gains.
  • Pay data showed job-stayers’ annual pay growth holding at 4.4 percent while job-changers’ pay rose to 7.0 percent, the largest year-over-year increase since August 2025, which ADP’s chief economist linked to supply constraints in parts of the labor market.
  • ADP based the report on anonymized payroll records covering more than 26 million workers, revised June’s estimate slightly from 98,000 to 95,000, and will publish the next monthly update on September 2, 2026.