ADP Reports Job Growth for Private Companies Fell Well Below July Estimates

Cropped shot of an unrecognizable male coffee shop owner hanging a "HIRING" sign in his window.
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Job growth in the private sector fell in July amid the recent surge of the Delta variant, payroll processing company ADP reported Wednesday. Private sector employment increased by 330,000 jobs from June to July while the June total of jobs added was revised down from 692,000 to 680,000, according to ADP. CNBC noted that July’s job creation showed the smallest gain since February.

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“The labor market recovery continues to exhibit uneven progress, but progress nonetheless,” said Nela Richardson, chief economist, ADP. “July payroll data reports a marked slowdown from the second quarter pace in jobs growth,” Richardson added. “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.”

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The biggest job gains for July were in leisure and hospitality, which added 139,000 new positions, CNBC reported. Education and health services added 64,000 payrolls while professional and business services expanded by 36,000 jobs. CNBC added that goods-producing industries contributed 12,000 new positions to the total, manufacturing was up 8,000, natural resources and mining gained 3,000 and construction added 1,000 jobs.

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The ADP count comes two days before the Labor Department nonfarm payrolls release. ADP had averaged about 30,000 fewer jobs a month through June compared to government numbers, reported CNBC. The Labor Department’s data includes government jobs and is expected to show a total gain of 845,000 following June’s 850,000 increase.

Fed Governor Christopher Waller told CNBC on Monday that he would be willing to start tapering the central bank’s bond purchases if the August and September jobs reports are strong.

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Last updated: August 4, 2021

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

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