Business manager working on computer at desk, analyzing online data research information and doing remote job. Using paperwork report on website to do freelance work remotely, home office.

Private sector employment grew by 324,000 jobs in July, according to the latest ADP National Employment Report. Annual pay for job-stayers was up 6.2% year-over-year, while pay for job-changers was up 10.2%.

“The economy is doing better than expected and a healthy labor market continues to support household spending,” said Nela Richardson, chief economist, ADP. “We continue to see a slowdown in pay growth without broad-based job loss.”

Service industries added 303,000 jobs, with two-thirds of those (+201,000) in leisure/hospitality. The information sector added 36,000 jobs, and transportation/trade/utilities added 30,000. Financial activities (-5,000) was the only service sector to post job losses.

Goods-producing industries added 21,000 jobs. This was largely driven by natural resources/mining (+48,000), while construction gained 9,000 jobs. These results were tempered by manufacturing shedding 36,000 jobs during the month.

There were large regional differences. The northeast added the most jobs (+276,000), followed by the midwest (+129,000) and then the west (+55,000). On the other hand, the south (and every subregion within it) lost jobs (-144,000).

By business size, small companies (1-49 employees) accounted for the majority of the job growth (+237,000). Medium-sized companies (50-499 employees) added 138,000 jobs, while large companies subtracted 67,000 jobs.