Job creation in July remained robust as the nation’s employment level rose by 324,000 jobs, according to the monthly ADP National Employment Report released Wednesday.
“The economy is doing better than expected, and a healthy labor market continues to support household spending,” Nela Richardson, chief economist with Roseland-based ADP, said. “We continue to see a slowdown in pay growth without broad-based job loss.”
Leisure and hospitality again drove growth. One weakness was manufacturing, an interest rate-sensitive industry that shed jobs for the fifth straight month, as it lost 36,000 positions.
The ADP report also showed annual pay continued its downward trend in July as job-stayers saw a year-over-year pay increase of 6.2%, the slowest pace of gains since November 2021. For job-changers, pay growth slowed to 10.2%.
Looking at where else jobs were added, the service-producing sector added 303,000 jobs, with leisure/hospitality adding 201,000.
In terms of company size, hiring was strong across the small and medium-sized establishments — adding 237,000 and 138,000 spots, respectively. Large establishments lost 67,000 jobs.