July 31 (UPI) — Private nonfarm payrolls increased by 122,000 jobs in July and saw a contraction in small business positions, according to the newest National Employment Report released by the ADP Research Institute on Wednesday.
The number was off the 150,000 positions gained in June while reporting that annual pay for workers rose 4.8% from the same time in 2023.
Nela Richardson, the chief economist with ADP, said the slowing growth of jobs will likely play a role in the Federal Reserve Board’s decision on whether to cut interest rates.
“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” Richardson said in a statement. “If inflation goes back up, it won’t be because of labor.”
The service-providing sector drove the bulk of the hiring in July by creating 81,000 jobs. Within that sector, trade/transportation/utilities produced 61,000 positions. Professional and business services lost 37,000 people.
The goods-producing sector offset those losses by growing its hiring by 37,000. Construction made up for 39,000 hires in July, to make up for the 18,000 in losses in information employment.
Small businesses took the brunt of the losses in July, losing 7,000 people. Employers with 20-49 employees lost 22,000 positions in this month, ADP reported.
Large companies, businesses with more than 500 employees, picked up the slack with 62,000 more hires this month.
