The non-farm private sector gained 330,000 jobs in July, according to the ADP National Employment Report. This follows a revised June increase of 680,000 jobs.
Small businesses with fewer than 50 employees gained 91,000 jobs. Medium-sized businesses with 50-499 employees gained 132,000, while large businesses increased by 106,000 jobs.
“The labor market recovery continues to exhibit uneven progress, but progress nonetheless. July payroll data reports a marked slowdown from the second quarter pace in jobs growth,” said Nela Richardson, chief economist, ADP. “For the fifth straight month the leisure and hospitality sector is the fastest growing industry, though gains have softened. The slowdown in the recovery has also impacted companies of all sizes. Bottlenecks in hiring continue to hold back stronger gains, particularly in light of new COVID-19 concerns tied to viral variants. These barriers should ebb in coming months, with stronger monthly gains ahead as a result.”
Service-providing employment led the increase with 318,000 jobs gained, driven by the leisure & hospitality and education & health sectors, which rose by 139,000 and 64,000 jobs respectively.
Goods-producing employment rose by 12,000 jobs. The manufacturing sector gained 8,000 jobs and construction rose by 1,000 jobs. Natural resources/mining rose by 3,000 jobs.
Read the ADP report.
