US Private Payrolls Add 44,000 Jobs in July

US private companies added 44,000 jobs in July, representing the lowest monthly increase since the start of the year. Data released Wednesday by ADP Research showed the gain fell short of economist expectations and followed a revised June increase of 95,000 positions. Small firms drove more than half of the total payroll growth.

Sectoral performance diverged, with education and health services adding 36,000 jobs while leisure and hospitality lost 11,000. Despite cooling hiring momentum, wage growth for employees switching jobs accelerated to 7% year-over-year, the fastest pace in nearly a year. Employees who remained in their roles saw a 4.4% increase.

Federal Reserve Chairman Kevin Warsh recently described the job market as "solid" and "steady," though three officials dissented during the last meeting to favor a rate hike. The Federal Reserve may maintain its focus on elevated inflation if the official government employment report released Friday confirms these trends.