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Private sector job growth rebounds in July

ADP reports an increase of 104,000 jobs in July, reversing last month's losses.

July 30, 2025 at 12:15 PM

Private company hiring bounced back with a 104,000 increase in July, ADP says

July saw a notable increase in private sector payrolls, signaling economic resilience.

Private sector adds 104,000 jobs in July according to ADP report

According to ADP's report, private companies added a seasonally adjusted 104,000 jobs in July. This recovery reverses a loss of 23,000 jobs in June, surpassing the expected growth of just 64,000. Last month’s figures were also revised upward from an initial estimate of a 33,000 job loss. The uptick is a sign of stability in a labor market that has shown signs of slowing. ADP's chief economist, Nela Richardson, stated that the data reflects a healthy economy, emphasizing renewed optimism among employers about consumer resilience. Significant job gains were recorded in the leisure and hospitality sector, which contributed 46,000 jobs, alongside growth in financial services, trade, transportation, and utilities. On a cautionary note, education and health services experienced a decline, losing 38,000 jobs. Wage growth remains steady at an annual rate of 4.4%. Looking ahead, the Bureau of Labor Statistics is set to release its employment report, which historically can vary significantly from ADP's figures, even though both organizations gauge the job market.

Key Takeaways

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Private companies added 104,000 jobs in July, a rebound from the loss observed in June.

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Leisure and hospitality led job creation with 46,000 new hires, reflecting consumer demand.

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ADP's data suggests a stable, if cautious, economic outlook amidst tariff concerns.

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Wage growth continues at about 4.4%, indicating healthy competition for talent.

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The upcoming BLS report will further clarify trends in job growth and may differ from ADP's findings.

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Small businesses, while contributing to job growth, lagged behind medium and large employers in adding jobs.

"Our hiring and pay data are broadly indicative of a healthy economy."

This statement from ADP chief economist highlights the overall economic health reflected in the hiring data.

"Employers have grown more optimistic that consumers... will remain resilient."

Richardson points out the positive outlook employers have about consumer spending, crucial for economic stability.

The rebound in hiring paints a cautiously optimistic picture of the economy. While the job growth is encouraging, it remains weaker than last year's robust levels. The key sectors driving this growth, particularly leisure and hospitality, indicate continued consumer demand amidst broader economic concerns. The impact of tariffs and associated inflation worries may challenge future job expansion. This mixed bag of recovery shows that while employers are optimistic, challenges remain, especially within sectors like education and health services. The upcoming BLS report will be crucial in corroborating or contradicting ADP’s findings, as it often shows different trends in job growth.