Private sector employment rose by 218,000 jobs in July, according to the ADP national employment report produced by Automatic Data Processing Inc. (NASD: ADP) in collaboration with Moody’s Analytics.

“The July employment gain was softer than June, but remains consistent with a steadily improving job market,” said Mark Zandi, chief economist of Moody’s Analytics. “At the current pace of job growth, unemployment will quickly decline. Layoffs are still receding and hiring and job openings are picking up. If current trends continue, the economy will return to full employment by late 2016.”

Midsize businesses added 92,000 jobs in July. Small businesses added 84,000, and large businesses added 41,000 jobs.

By sector, the service-providing sector added 202,000 jobs, and the goods-producing sector added 16,000 jobs.