Key facts
- Private employment increased by 44,000 jobs in July.
- This is a slowdown from the 95,000 jobs added in June.
- Economists had forecast 70,000 jobs for July.
- The ADP report is published ahead of the Bureau of Labor Statistics' employment report.
- Economists predict overall nonfarm payrolls advanced 80,000 in July.
- The unemployment rate is forecast to remain at 4.2%.
U.S. private payrolls grew at a slower pace in July, with 44,000 jobs added, according to the ADP National Employment Report released on Wednesday. This figure fell short of economists' expectations of 70,000 jobs and represented a decrease from the 95,000 jobs added in June, which was revised downward. The ADP report, developed in collaboration with the Stanford Digital Economy Lab, is often seen as a precursor to the more closely watched Bureau of Labor Statistics (BLS) employment report, though it has historically been an unreliable gauge of the BLS's private payroll estimates. Economists surveyed by Reuters predict that the BLS will report an increase of 78,000 private payroll jobs for July. The overall nonfarm payrolls are forecast to have advanced by 80,000, with the unemployment rate expected to hold steady at 4.2%. However, a recent Conference Board survey indicated a drop in consumer sentiment regarding job availability, suggesting a potential risk of the jobless rate edging higher.