ADP National Employment Report - July Insights
In the most recent ADP National Employment Report, data reveals that private sector employment saw a notable boost with an addition of
44,000 jobs in July 2026. This growth reflects a significant 4.4% increase in annual pay, suggesting positive trends in the U.S. labor market amidst varying economic conditions.
Key Highlights of the July Report
The July report, produced by ADP in collaboration with the Stanford Digital Economy Lab, provides an independent measure of the labor market based on anonymized payroll data of over
26 million private-sector employees. Here are some of the standout statistics from this month’s report:
- - Total jobs added: 44,000
- - Year-over-year pay increase: 4.4%
Sector Performance
The distribution of job additions was uneven across sectors. While the service-providing sector experienced notable growth, the goods-producing sector faced slight declines. Below are some detailed insights:
- - Goods-Producing: A net loss of 3,000 jobs
- Natural Resources/Mining: -6,000
- Construction: +1,000
- Manufacturing: +2,000
- - Service-Providing: An increase of 47,000 jobs
- Education/Health Services: +36,000
- Financial Activities: +10,000
- Professional/Business Services: +9,000
Regional Insights
The report also highlights the geographical disparities in job growth:
- - Northeast: +37,000
- - Midwest: -9,000
- - South: +9,000
- - West: +7,000
These trends suggest that while the Northeast is seeing significant job growth, other regions are fluctuating, with some like the Midwest suffering from losses.
Pay Growth Dynamics
Perhaps even more telling is the analysis of pay growth:
- - Median Change in Annual Pay:
-
Job-Stayers: +4.4%
-
Job-Changers: +7.0%
The data indicates that workers who change jobs are experiencing the fastest pay growth in nearly a year, reflecting increased demand for labor and potential hiring challenges faced by employers.
Dr. Nela Richardson, chief economist at ADP, noted, "Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market. Typical hiring patterns are changing as employers react to shifting macroeconomic conditions."
Small vs. Large Establishments
Job creation also differed according to establishment sizes, indicating a potential trend of smaller firms contributing significantly to job growth:
- - Small establishments (1-19 employees): +27,000
- - Large establishments (500+ employees): +13,000
Interestingly, medium-sized firms displayed less growth, with a mixed performance across different sizes of establishments.
Looking Ahead
As the U.S. economy continues to adapt to changing conditions, these insights shed light on the current landscape of the labor market. For businesses and job seekers alike, understanding these trends will be crucial in navigating the challenges and opportunities that lie ahead. The next
ADP National Employment Report is scheduled for release on
September 2, 2026, which will provide continued insights into employment trends and economic health.
To learn more about the complete report, including historical data and further insights, visit
ADP Employment Report.