Private sector hiring grew by 44,000 jobs in July, while pay increased 4.4% year-over-year, payroll giant ADP
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The number of jobs added last month was less than half of the 95,000 gained in June, which was revised down from the 98,000 that were
The job gains mostly came in service-providing industries, which added 47,000 jobs overall, compared to 3,000 lost in the goods-producing sector. The professional and business services sector, which includes accounting and tax preparation services, added 9,000 jobs, while financial activities such as banking added 10,000 jobs.
“When you look at those white collar jobs — information, financial activities, professional/business services — they are either holding their own or growing a little bit,” said ADP chief economist Nela Richardson during a conference call with reporters. “That is good news when you think about some of the concerns regarding AI affecting white collar jobs. We’re not seeing it this month. We’re actually seeing something quite different this month when it comes to white collar jobs, with more strength.”
Small businesses with between one and 19 employees added 23,000 jobs in July, but those with between 20 and 49 employees lost 4,000 jobs. Medium establishments with between 50 and 249 employees gained 2,000 jobs, while companies with between 250 and 499 employees added 6,000. Large organizations with 500 employees or more gained 13,000 jobs.
Pay gains for employees who stayed in their jobs held steady at 4.4% in July, while pay growth for those who changed jobs rose to 7.0%, the biggest year-over-year increase since August 2025. The median change in annual pay for job-stayers in professional and business services was 4.1%.
“Job stayers, they’re not losing ground, they’re actually holding ground,” said Richardson. “They’ve been very steady for the last 16 months, in fact.” She noted that ADP is also seeing a step up in pay for new hires.
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