The increase in employment in the U.S. private institutional sector slowed in July.
On the 5th (local time), Automatic Data Processing (ADP), a U.S. employment information firm, said private-sector employment in the United States increased by 44,000 from the previous month.
That is a sharp slowdown from June, the previous month, when it rose by 95,000. It also fell short of the 75,000 forecast by experts compiled by Dow Jones.
An increase of 46,000 in education and health services contributed to employment growth. In service-providing institutional sectors such as financial activities (10,000), professional and business services (9,000), and information (5,000), a total increase of 47,000 accounted for most of July's job gains.
By contrast, employment in goods-producing institutional sectors fell by a total of 3,000.
The wage growth rate for workers who stayed at their existing jobs was 4.4% from a year earlier. Wage growth for new job seekers was 7.0%, the highest in 11 months since August last year.
Nela Richardson, ADP chief economist, said, "New job seekers are highly sensitive to real-time economic conditions, and their wage growth indicates there are supply constraints in parts of the labor market."
Meanwhile, the Labor Department is scheduled to release the official nonfarm payrolls for July on the 7th.