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Private Sector Hiring Slows Sharply in July
5 Aug
Summary
- Private job growth hit 44,000 in July, missing forecasts.
- Health care sector drove nearly all job gains last month.
- Job switchers experienced their largest pay increase since August 2025.
Hiring within the private sector experienced a notable slowdown in July, with only 44,000 new jobs added, falling short of the 75,000 forecast and down from June's revised 95,000. The services sector accounted for all gains, primarily driven by the education and health services industry, which contributed 36,000 jobs.
Conversely, goods-producing companies saw a net decrease of 3,000 jobs. Despite the overall sluggish hiring pace, individuals who switched jobs reported a significant 7% pay increase, the largest observed since August 2025. This suggests that while typical hiring patterns are shifting due to macroeconomic conditions, job changers are sensitive to real-time economic factors.
