Private-sector employment growth slows in August

ROSELAND, N.J. – Private sector employment increased by 177,000 jobs in August and annual pay was up 5.9% year-over-year, according to the most recent ADP National Employment Report, released today.

“This month’s numbers are consistent with the pace of job creation before the pandemic,” said Nela Richardson, chief economist for 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.”

Number of jobs

The ADP noted that job growth slowed in August, primarily due to activity in the leisure and hospitality segments. Job creation by hotels, restaurants and other employers in the sector fell to 30,000 in August after months of strong hiring, according to the report, while the manufacturing sector added 12,000 jobs last month.

By region, employers in the South added the most jobs at 119,000, while at the other extreme the number of jobs in the Midwest actually dropped by 15,000.

By company size, those with up to 49 employees added 18,000 jobs, those with 50 to 499 employees added 79,000 jobs, and those with 500 or more employees added 83,000 jobs last month.

Pay growth

For workers who continued in their current job, they saw a year-over-year pay increase of 5.9%, the slowest growth since October 2021. For those who changed jobs, pay growth slowed to 9.5%.

The ADP report noted that, for the first time, all 50 states and Washington D.C. experienced a slowdown in pay growth.

The ADP National Employment Report is produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab as 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.

For more information about this month’s report and other employment and pay data, visit the ADP National Employment Report website.

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