U.S. Private Employment Surges in July with a Surprise Increase of 104,000 Jobs

JOON HYOUNG LEE

Summary

U.S. private employment in July increased by 104,000, far exceeding the market forecast of 64,000.
The service sector—including construction, financial activities, and leisure and hospitality—reportedly contributed significantly to the employment rebound.
Wage growth remained at 4.4% for four consecutive months, which indicates a stable economic recovery.

This month, the increase in private employment in the U.S. far exceeded market expectations.

Automatic Data Processing (ADP), a U.S. employment data company, announced on the 30th (local time) that new private sector jobs in the U.S. increased by 104,000 in July compared to the previous month. This figure is significantly above the expert forecast of 64,000 compiled by Dow Jones.

Service sector jobs—including construction (15,000), financial activities (28,000), and leisure and hospitality (46,000)—rose by a total of 74,000, which contributed to the employment rebound. The wage growth rate remained at 4.4% for the fourth consecutive month.

Last month’s private sector new hires were revised from a previously reported decrease of 33,000 jobs to a decrease of 23,000 jobs compared to the previous month.

Nela Richardson, Chief Economist at ADP, said about this month’s figures, “They broadly suggest a healthy economy,” and added, “Employers are more optimistic about consumers, who are the backbone of the economy, maintaining their resilience.”

Meanwhile, the U.S. Department of Labor is set to release its employment report on the 1st of next month. Experts expect that U.S. nonfarm employment will increase by 100,000 jobs in July.

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