U.S. Private Sector Hiring Rebounds in July with 104,000 New Jobs, Says ADP

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Labor market shows renewed momentum; leisure, hospitality, and finance lead job gains

July 2025 — Hiring at U.S. private companies surged in July, with payrolls increasing by 104,000 according to the ADP National Employment Report released Wednesday. The figure exceeded the Dow Jones forecast of 64,000 and marked a strong turnaround from June’s revised decline of 23,000 jobs.

Although job creation remains below the pace seen in 2024, the July increase is the largest monthly gain since March, suggesting the labor market remains resilient despite trade tensions and higher borrowing costs.

📊 Key July ADP Report Highlights

Private Payrolls: +104,000 (forecast: +64,000)
June Payrolls (revised): –23,000 (initially –33,000)
Largest Sector Gains:
- Leisure & Hospitality: +46,000
- Financial Activities: +28,000
- Trade, Transportation & Utilities: +18,000
- Construction: +15,000
Sector Losses:
- Education & Health Services: –38,000
By Company Size:
- Medium Businesses (50–249 employees): +46,000
- Large Businesses (250+ employees): +46,000
- Small Businesses (<50 employees): +12,000
Annual Wage Growth: +4.4% (steady from prior months)

Employers More Optimistic on Consumer Resilience

“Our hiring and pay data are broadly indicative of a healthy economy,” said Nela Richardson, Chief Economist at ADP. “Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient.”

The data arrives amid lingering concerns over President Donald Trump’s tariffs and their potential drag on economic growth. But recent sentiment surveys indicate that business confidence is stabilizing, supported by expectations of continued consumer spending.

Implications for Friday’s Jobs Report

The ADP release comes ahead of the Bureau of Labor Statistics (BLS) nonfarm payrolls report due Friday. Economists expect:

Total July Jobs: +100,000 (including government)
Unemployment Rate: 4.2% (up from 4.1%)

While the ADP and BLS figures often diverge, today’s upside surprise raises the possibility that the official labor report could also show a stronger‑than‑expected jobs rebound.