ADP July Private Payrolls: 104,000 Jobs Added, Wages Rise

ADP July Private Payroll Report

• 📈 ADP's July private payroll data shows an increase of 104,000 jobs, significantly beating the estimate of 64,000.
• ⚠️ This figure reverses the negative number reported for the previous month, indicating a rebound in private sector hiring.

Sector and Business Size Breakdown

• 📊 The service sector added approximately 74,000 jobs, while the goods-producing sector saw an increase of about 31,000 jobs.
• 🏢 Small businesses returned to hiring with 12,000 jobs added, after being down for the prior two months.
• 💼 Medium and large businesses each added around 46,000 jobs.

Industry-Specific Job Growth

• 🏨 Leisure and hospitality led job growth with 46,000 positions added.
• 💰 Financial activities contributed 28,000 jobs, and trade, transportation, and utilities added 18,000 jobs.
• ⚠️ Notably, education and health services, typically a source of job growth, saw a decrease of 38,000 jobs.

Wage Growth and Economic Outlook

• 🧑‍💼 Job stayers saw wage gains remain unchanged at 4.4%.
• 🚀 Those who changed jobs received an average raise of 7%, an increase from the prior month.
• 💬 ADP's chief economist noted that hiring and pay data are indicative of a healthy economy, with employers optimistic about consumer resilience.

Comparison to BLS Report

• 🎯 The ADP report is a precursor to the official jobs report, with an estimate of 100,000 jobs for the upcoming BLS release.
• ⚠️ It's important to note that ADP has had significant misses in recent months, though it aligns over the course of a year.
• 📉 The BLS report will also include federal employment changes, which are decreasing due to presidential initiatives.