Employers added just 44,000 workers in the private sector in July, according to the ADP National Employment Report released earlier this week, marking a sharp slowdown in hiring and falling well short of the 75,000 economists had expected.
The July figure represents a significant drop from June’s downwardly revised 95,000 gain and signals a meaningful deceleration in job growth across the country. The ADP report, which tracks private-sector payroll trends, showed this was the weakest month of hiring in 2026 so far.
A separate report from the Bureau of Labor Statistics painted an even weaker picture for overall employment, showing nonfarm payrolls declined by 23,000 in July, missing expectations for around 80,000 new jobs. The unemployment rate held steady at 4.1 percent, according to the BLS data.
The slowdown in hiring follows months of weakness in the labor market. June saw nonfarm payrolls rise by just 57,000, down sharply from May’s downwardly revised 63,000 gain. This pattern of declining job growth has raised concerns among economists about the health of the labor market heading into the second half of 2026.
Despite the hiring slowdown, wage growth remained resilient. ADP reported that annual pay was up 4.4 percent in July, with job switchers seeing pay increases of 6.8 percent and job stayers gaining 4.4 percent. Bank of America Institute research showed that lower-income households saw after-tax wage growth accelerate to 5.2 percent year-over-year in July, surpassing higher-income households for the first time since December 2024.
The weak employment figures come at a time when the labor market has been showing signs of cooling. The three-month average of payroll employment gains stands at 170,000, according to the Department of Labor, reflecting the moderation in hiring momentum from earlier in the year. Average hourly earnings growth has also moderated, with year-over-year wage growth at 3.5 percent in June, down from peaks exceeding 4.0 percent in earlier periods.
Sources
- ADP Media Center — ADP National Employment Report showing 44,000 private-sector jobs added in July with 4.4% annual pay growth
- Bureau of Labor Statistics — July 2026 Employment Situation report showing nonfarm payrolls declined 23,000 and unemployment rate held at 4.1%
- CNBC — Coverage of both ADP report and June jobs data showing 57,000 nonfarm payroll gains
- WSJ — Report on July private-sector hiring missing expectations with 44,000 jobs added
- Bank of America Institute — Monthly employment report showing wage growth data and lower-income household wage acceleration to 5.2% YoY
- Kiplinger — Analysis of July jobs report showing job growth was slow in middle of 2026
