U.S. July ADP employment growth misses forecast at 44,000

U.S. private-sector employment rose by 44,000 in July, below the 68,000 market forecast, according to ADP’s National Employment Report. The ADP nonfarm employment figure is released ahead of the U.S. Labor Department’s payrolls data and is calculated based on more than 500,000 companies using ADP’s payroll management services. By contrast, the U.S. Labor Department’s nonfarm payrolls report is the official gauge and includes changes in government employment. The nonfarm employment data is one of the indicators the U.S. Federal Reserve considers in interest-rate decisions. Stronger employment data can support rate hikes or a hold to prevent overheating, while weaker data can support rate cuts to boost the economy.