ADP says private payroll growth slowed to 44,000 in July

Private companies added 44,000 jobs in July, a smaller increase than the 95,000 reported in June and below economists’ expectations, according to ADP. The report suggests hiring slowed across the private sector at a time when the labor market has been cooling. Most of the gains came from services, especially education and health services, which added 36,000 positions. Financial activities, professional and business services, and other services also posted gains, while trade, transportation and utilities, as well as natural resources and mining, recorded declines. ADP also said pay growth remained steady for workers who stayed in their jobs, while people who changed jobs saw faster wage growth. The report arrives ahead of the U.S. government’s official July employment data, which economists expect will show a modest increase in payrolls and an unchanged unemployment rate.