US private-sector employment rose by 178,000 jobs in July from June, according to the ADP national employment report. July’s gain fell short of the 191,000 gain in June, which was revised upward from 158,000.

Reuters reported US companies in July hired fewer workers than anticipated; its survey of economists had forecast the report would show a gain of 185,000 jobs, with estimates ranging from 151,000 to 225,000.

“Job gains continued to be strong in the month of July,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “However, as the labor market tightens employers may find it more difficult to recruit qualified workers.”

The number of goods-producing jobs rose by 4,000 as a loss of 4,000 manufacturing jobs was offset by gains of 6,000 construction jobs and 3,000 natural resources/mining jobs. Service-providing jobs rose by 174,000, including 65,000 jobs in the professional and business sector and 433,000 jobs in education/health services.

Large businesses added 45,000 jobs in July. Midsize businesses added 83,000 jobs and small businesses added 50,000 jobs.

“The American job machine continues to operate in high gear,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report in collaboration with ADP. “Job gains are broad-based across industries and company sizes, with only manufacturers reducing their payrolls. At this pace of job growth, unemployment will continue to quickly decline.”