US private sector adds fewer jobs than expected in July, ADP says

Private sector employment in the US rose less than expected in July, according to the latest figures from ADP.

Employers added 178,000 jobs from June to July, falling short of expectations for a 185,000 increase. Meanwhile, private payroll gains for June were revised up to 191,000 from 158,000.

Small businesses with fewer than 50 employees accounted for 50,000 of the jobs added to the economy, while medium-sized businesses with between 50 and 499 staff added 83,000 jobs and large business accounted for an extra 45,000.

The goods-producing sector added 4,000 jobs, while the services sector added 174,000.

Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said: “Job gains continued to be strong in the month of July. However, as the labour market tightens employers may find it more difficult to recruit qualified workers.”