US private sector employment rises less than expected in July

US private sector employment increased by 44,000 in July, below market expectations of 68,000, official figures showed on Wednesday.

The National Employment Report for July, prepared by the ADP Research Institute in cooperation with the Stanford Digital Economy Lab, stated that employment in the service sector rose by 47,000, while employment in the goods-producing sector declined by 3,000.

The data regarding the increase in private sector employment in June was revised from 98,000 to 95,000.

According to ADP data calculated using payroll information of more than 26 million private sector employees in the US, annual wage growth in July was 4% for job-stayers and 7% for job-changers.

ADP Research Institute Chief Economist Nela Richardson stated that job-changers are extremely sensitive to sudden changes in economic conditions, and rapid wage growth in this group pointed to supply constraints in some parts of the labor market.

Richardson expressed that traditional hiring trends changed as employers adapted to shifting macroeconomic conditions.