The gain this month followed a 281,000 increase in June that was the strongest since November 2012, according to data from the ADP Research Institute in Roseland, New Jersey. The median forecast in a Bloomberg survey of economists called for a 230,000 advance in July.

Businesses are limiting dismissals and taking on more workers, spurring consumer confidence and laying the groundwork for a pickup in household spending that accounts for about 70 percent of the economy. A Labor Department report in two days is projected to show private payrolls climbed by 230,000 workers last month.

"It's job growth that's going to fuel further gains for the economy via its benefit to consumer spending, and thus I see pretty good prospects for the second half of the year," said Russell Price, senior economist at Ameriprise Financial Inc. in Detroit and among the top ADP forecasters in the Bloomberg survey. "The economy rebounded strongly in the second quarter and we're seeing strong employment growth continue into the third quarter."