Washington, United States, Aug 5, 2026 (AFP)
Hiring in the US private sector was significantly below expectations in July, data from payroll firm ADP said Wednesday, with industries like leisure and hospitality shedding jobs.
Private sector job growth came in at 44,000 last month, lower than the 75,000 that analysts had anticipated.
The figures are closely monitored ahead of official employment numbers due Friday, although the reports can diverge.
"Job-changers are highly sensitive to real-time economic conditions," said ADP chief economist Nela Richardson.
"Typical hiring patterns, meanwhile, are changing as employers react to shifting macro-economic conditions," she added.
The cooldown came as firms deal with continued fallout from war in the Middle East, which has caused energy prices to surge globally.
Prices at US gasoline pumps have climbed, and businesses have been hit by higher inflation as well.
"Businesses are hiring less due to the extra cost pressure created by the jump in energy prices and AI, which is boosting the productivity of existing workers and making medium-term staffing needs harder to judge," said economist Samuel Tombs of Pantheon Macroeconomics.
US-Israel strikes targeting Iran from late February triggered Tehran's retaliation in virtually blocking off the Strait of Hormuz.
Temperatures remain high, with Iran tightening its grip on the key waterway for global oil and gas transit. US President Donald Trump has warned that Tehran would get hit hard if negotiations fell through.
"More generally, ADP's data bolster the case for thinking that the spring upturn in employment growth is over," Tombs said in a note.
Economist Matthew Martin of Oxford Economics added however that the July slowdown is not cause for concern, and aligns with an assumption that the labor market is not overheating.
"We continue to believe the labor market won't be a source of inflationary pressure," Martin said.
Among private businesses, leisure and hospitality lost 11,000 jobs in July while trade, transport and utilities shed 8,000 jobs.
Hiring in education and health services however was a solid 36,000, while manufacturing added 2,000 jobs.
Among workers who changed jobs, pay growth increased to seven percent, ADP said, adding that this was the biggest year-on-year uptick since August 2025.
Salary gains for those who remained in their jobs was steady at 4.4 percent.

Sumber : AFP