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Nonfarm job growth excluding government totaled a seasonally adjusted 44,000 for the month, below the downwardly revised 95,000 in June and less than the Dow Jones consensus forecast for 75,000.
On net, all of the gains came from the services sector, which added 47,000 while goods-producing companies see a decline of 3,000.
Of those jobs, the education and health services sector produced 36,000, continuing a longstanding trend for the industry in leading employment growth. Financial activities added 10,000, professional and business services contributed 9,000 and the other services category saw a gain of 6,000.
Trade, transportation and utilities lost 8,000 while natural resources and mining was off 6,000. Manufacturing saw growth of just 2,000 while construction added 1,000.
Distribution among company size was relatively balanced, with firms employing fewer than 50 people leading with 23,000 new jobs.
Pay gains held steady at 4.4% annually for those staying in their jobs. However, job switchers saw a 7% increase, the largest since August 2025.
“Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies
supply constraints in parts of the labor market,” ADP chief economist Nela Richardson said. “Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions.”
The monthly employment gain was the smallest since January during a year in which the labor market has steadied after showing little progress in 2025.
Most Federal Reserve officials have expressed confidence in the jobs picture and are putting inflation concerns at the forefront. The Fed has kept its benchmark interest rate steady, though markets are betting on a hike before the end of the year if the inflation data does not improve.
The ADP report comes two days before the Bureau of Labor Statistics releases its official nonfarm payrolls report.
Economists surveyed by Dow Jones expect that count to show 83,000 hires, up from June’s 57,000, and the unemployment rate holding at 4.2%.
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