Report: Private sector added 163,000 jobs in July

Private-sector employers added 163,000 jobs in July, a slightly slower pace than June but a sign that the labor market is showing signs of life, ADP Employer Services reported on Wednesday. 

The labor market has been in a stall for the past several months as the European debt crisis and economic uncertainty on Capitol Hill over the so-called fiscal cliff continue to weigh on employers' desire to hire. 

While the ADP report is a positive sign for the sluggish job market, it had regularly missed the mark on the government estimates for growth. 

The Labor Department is set to release its July report on Friday with estimates that around 100,000 jobs were created in the public and private sectors. 

The estimated gain from May to June was revised down slightly from the initial estimate of 176,000 to 172,000, ADP reported. 

Employment in the service sector expanded by 148,000 in July after rising by a revised 151,000 in June. 

Manufacturing employment saw an increase of 6,000 last month after a revised increase of 9,000 in June.

Another bright spot is the increase in construction jobs, which added 5,000 positions in July. 

The financial-services sector added 9,000 jobs from June to July, marking the 12th consecutive monthly gain.

The Institute of Supply Management is due out later Wednesday morning with its measure of manufacturing-sector growth. 

Large employers — those with 500 or more workers — increased by 23,000, while payrolls at medium-sized firms — 50 to 499 workers — rose 67,000 in July. 

Employment on small payrolls — those with up to 49 workers — were also up, by 73,000, that same period.