Companies in the private sector added 44,000 jobs in July, payroll processing firm ADP said in its latest report on Wednesday.

The reading came in below economists’ expectations for a gain of 70,000 jobs and also trailed the prior month’s revised 95,000 payroll increase.

ADP’s monthly estimate is one of the early snapshots of U.S. hiring trends and is often watched for clues ahead of broader labor market data. A softer-than-expected reading can highlight how hiring is shifting across industries and business sizes, even when wage growth remains firm in some parts of the workforce.

"Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market," said Nela Richardson, ADP's chief economist. "Typical hiring patterns, meanwhile, are changing as employers react to shifting macro-economic conditions."

Which industries hired the most workers?

Education and health services led job creation in July with 36,000 new positions. Financial activities added 10,000 jobs, professional and business services gained 9,000, and other services added 6,000.

Information added 5,000 jobs, while manufacturing and construction added 2,000 and 1,000 positions, respectively.

On the negative side, leisure and hospitality lost 11,000 jobs, trade, transportation and utilities lost 8,000, and natural resources and mining lost 6,000.

Large businesses, defined as those with 500 or more employees, gained 13,000 jobs in July. Businesses with 50 to 499 employees added 8,000 workers, while establishments with fewer than 50 employees gained 23,000 jobs.

People who stayed in their roles saw pay rise 4.4% from a year earlier, while pay gains for workers who changed jobs accelerated to 7%, the largest year-over-year increase since August 2025.