ROSELAND, N.J., Aug. 30,
2023 /PRNewswire/ -- Private sector employment
increased by 177,000 jobs in August and annual pay was up 5.9
percent year-over-year, according to the August ADP®
National Employment ReportTM produced by the ADP
Research Institute® in collaboration with the Stanford
Digital Economy Lab ("Stanford
Lab"). The ADP National Employment Report is an independent
measure and high-frequency view of the private-sector labor market
based on actual, anonymized payroll data of more than 25 million
U.S. employees.
The jobs report and pay insights use ADP's fine-grained
anonymized and aggregated payroll data to provide a representative
picture of the private-sector labor market. The report details the
current month's total private employment change, and weekly job
data from the previous month. Because the underlying ADP payroll
databases are continuously updated, the report provides a
high-frequency, near real-time measure of U.S. employment. This
measure reflects the number of employees on ADP client payrolls
(Payroll Employment) to provide a richer understanding of the labor
market. ADP's pay measure uniquely captures the earnings of a
cohort of almost 10 million employees over a 12-month period.
"This month's numbers are consistent with the pace of job
creation before the pandemic," said Nela
Richardson, chief economist, ADP. "After two years of
exceptional gains tied to the recovery, we're moving toward more
sustainable growth in pay and employment as the economic effects of
the pandemic recede."
August 2023 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 177,000 jobs in August
Job
growth slowed notably last month, driven heavily by leisure and
hospitality. Job creation by hotels, restaurants and other
employers in the sector fell to 30,000 in August after months of
strong hiring.
Change in U.S. Private Employment:
177,000
Change by Industry Sector
-
Goods-producing: 23,000
- Natural resources/mining 5,000
- Construction 6,000
- Manufacturing 12,000
- Service-providing:
154,000
- Trade/transportation/utilities 45,000
- Information 5,000
- Financial activities 0
- Professional/business services 15,000
- Education/health services 52,000
- Leisure/hospitality 30,000
- Other services 7,000
Change by U.S. Regions
- Northeast:
59,000
- New England -3,000
- Middle Atlantic 62,000
- Midwest: -15,000
- East North Central -11,000
- West North Central -4,000
- South: 119,000
- South Atlantic 54,000
- East South Central 7,000
- West South Central 58,000
- West: 13,000
- Mountain 26,000
- Pacific -13,000
Change by Establishment Size
- Small
establishments: 18,000
- 1-19 employees 1,000
- 20-49 employees 17,000
- Medium establishments: 79,000
- 50-249 employees 74,000
- 250-499 employees 5,000
- Large establishments: 83,000
PAY INSIGHTS
Pay growth continued its slowdown in August
Job
stayers saw a year-over-year pay increase of 5.9 percent, the
slowest growth since October 2021.
For job changers, pay growth also decelerated, to 9.5 percent. For
the first time, all 50 states and Washington, D.C., experienced a slowdown in
pay growth.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 5.9%
- Job-Changers 9.5%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
- Goods-producing:
- Natural resources/mining 5.9%
- Construction 6.0%
- Manufacturing 5.5%
- Service-providing:
- Trade/transportation/utilities 5.8%
- Information 5.4%
- Financial activities 6.2%
- Professional/business services 5.8%
- Education/health services 6.5%
- Leisure/hospitality 6.9%
- Other services 5.8%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small firms:
- 1-19 employees 5.1%
- 20-49 employees 6.0%
- Medium firms:
- 50-249 employees 6.2%
- 250-499 employees 6.0%
- Large firms:
To see Pay Insights by U.S. State, Gender, and Age for
Job-Stayers, visit here:
* Sum of components may not equal total, due to rounding.
The July total of jobs added was revised from 324,000 to
371,000. The historical data file, and weekly data for the previous
month, is available at https://adpemploymentreport.com/.
ADP conducted a rebenchmarking of its employment data in August
based on full-year 2022 results from the Quarterly Census of
Employment and Wages (QCEW). This resulted in 7,000 jobs being
added to the August ADP National Employment Report. ADP's full-year
benchmarking will take place in February
2024 with the publication of the January 2024 report.
To subscribe to monthly email alerts or obtain additional
information about the ADP National Employment Report, including
employment and pay data, interactive charts, methodology, and a
calendar of release dates, please visit
https://adpemploymentreport.com/.
The September 2023 ADP National
Employment Report will be released at 8:15 a.m. ET on October 4,
2023.
About the ADP® National Employment
ReportTM
The ADP National Employment Report
is an independent measure of the change in U.S. private employment
and pay derived from actual, anonymized payroll data of client
companies served by ADP, a leading provider of human capital
management solutions. The report is produced by ADP Research
Institute in collaboration with the Stanford Digital Economy
Lab.
The ADP National Employment Report is broadly distributed to the
public each month, free of charge, as part of the company's
commitment to offering deeper insights of the U.S. labor market and
providing businesses and governments with a source of credible and
valuable information.
About the ADP Research Institute®
The ADP Research
Institute delivers data-driven discoveries about the world of work
and derives reliable economic indicators from these insights. We
offer these findings as a unique contribution to making the world
of work better and more productive by delivering actionable
insights to the economy at large.
About ADP (NASDAQ – ADP)
Designing better ways to work
through cutting-edge products, premium services and exceptional
experiences that enable people to reach their full potential.
HR, Talent, Time Management, Benefits and Payroll. Informed by data
and designed for people. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People,
ADP National Employment Report, and ADP Research Institute are
registered trademarks of ADP, Inc. All other marks are the property
of their respective owners.
Copyright © 2023 ADP, Inc. All rights reserved.
ADP-Media
View original content to download
multimedia:https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-177-000-jobs-in-august-annual-pay-was-up-5-9-301913687.html
SOURCE ADP, Inc.