Private Sector Employment in the US Increases by 177,000 Jobs in August, According to ADP Report
Private sector employment in the United States saw an increase of 177,000 jobs in August, according to the August ADP National Employment ReportTM produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab. This positive trend indicates a sustained growth in pay and employment as the effects of the pandemic continue to recede.
The report highlights that annual pay was up 5.9% year-over-year, suggesting a steady rise in wages and employment opportunities. However, job growth in August was notably slow, mainly driven by the leisure and hospitality sector, which only added 30,000 jobs. This marks a significant decrease compared to previous months when the sector experienced robust hiring.
Among the goods-producing industry sector, natural resources/mining added 5,000 jobs, construction added 6,000 jobs, and manufacturing added 12,000 jobs. Within the service-providing sector, trade/transportation/utilities saw an increase of 45,000 jobs, information added 5,000 jobs, financial activities remained unchanged, professional/business services added 15,000 jobs, education/health services added 52,000 jobs, leisure/hospitality added 30,000 jobs, and other services added 7,000 jobs.
Regionally, the Northeast showed the most significant increase in jobs, with 59,000 positions added, while the Middle Atlantic region alone saw an increase of 62,000 jobs. Unfortunately, the Midwest experienced a decrease of 15,000 jobs, with the East North Central region losing 11,000 jobs and the West North Central region losing 4,000 jobs. On the other hand, the South saw the largest increase in jobs with 119,000, and the West added 13,000 jobs.
In terms of establishment size, small establishments added 18,000 jobs, medium establishments added 79,000 jobs, and large establishments added 83,000 jobs.
While pay growth continued, there was a slowdown in August. Job stayers saw a year-over-year pay increase of 5.9%, the slowest growth since October 2021. Job-changers experienced a pay increase of 9.5%, which is also slower compared to previous periods. This slowdown in pay growth was observed in all 50 states and Washington, D.C.
Overall, the report presents a detailed analysis of employment trends based on ADP’s fine-grained, anonymized, and aggregated payroll data of more than 25 million U.S. employees. It offers a representative picture of the private-sector labor market, providing a high-frequency and near real-time measure of employment in the United States.
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