ADP National Employment Report: Private Sector Employment Increased by 324,000 Jobs in July; Annual Pay was Up 6.2%

Career Climbers / 7th August 2023

Private sector employment increased by 324,000 jobs in July, and annual pay was up 6.2 percent year-over-year, according to the July 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.

“The economy is doing better than expected and a healthy labor market continues to support household spending,” said Nela Richardson, chief economist, ADP. “We continue to see a slowdown in pay growth without broad-based job loss.”

July 2023 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

JOBS REPORT

Private employers added 324,000 jobs in July
Job creation remained robust in July, with leisure and hospitality again driving growth. One weakness was manufacturing, an interest rate-sensitive industry that shed jobs for the fifth straight month.

Change in U.S. Private Employment:     324,000

Change by Industry Sector

– Goods-producing:     21,000

  • Natural resources/mining     48,000
  • Construction     9,000
  • Manufacturing     -36,000

– Service-providing:     303,000

  • Trade/transportation/utilities     30,000
  • Information     36,000
  • Financial activities     -5,000
  • Professional/business services     5,000
  • Education/health services     12,000
  • Leisure/hospitality     201,000
  • Other services     24,000

Change by U.S. Regions

– Northeast:     276,000

  • New England     114,000
  • Middle Atlantic     162,000

– Midwest:     129,000

  • East North Central     68,000
  • West North Central     61,000

– South:     -144,000

  • South Atlantic     -87,000
  • East South Central     -34,000
  • West South Central     -23,000

– West:     55,000

  • Mountain     8,000
  • Pacific     47,000

Change by Establishment Size

– Small establishments:     237,000

  • 1-19 employees     114,000
  • 20-49 employees     123,000

– Medium establishments:     138,000

  • 50-249 employees     152,000
  • 250-499 employees     -14,000

– Large establishments:     -67,000

  • 500+ employees     -67,000

PAY INSIGHTS

Pay growth continued downward trend in July
Job stayers saw a year-over-year pay increase of 6.2 percent, the slowest pace of gains since November 2021. For job changers, pay growth slowed to 10.2 percent.

Median Change in Annual Pay (ADP matched person sample)

– Job-Stayers     6.2%

– Job-Changers     10.2%

Median Change in Annual Pay for Job-Stayers by Industry Sector

– Goods-producing:                                                       

  • Natural resources/mining      6.2%
  • Construction      6.4%
  • Manufacturing      5.7%

– Service-providing:                                               

  • Trade/transportation/utilities     6.0%
  • Information     5.5%
  • Financial activities     6.4%
  • Professional/business services     6.0%
  • Education/health services     6.7%
  • Leisure/hospitality     7.2%
  • Other services     6.1%

Median Change in Annual Pay for Job-Stayers by Firm Size

– Small firms:                                                                

  • 1-19 employees     5.2%
  • 20-49 employees     6.2%

– Medium firms:                                                             

  • 50-249 employees     6.4%
  • 250-499 employees     6.2%

– Large firms:                                                                

  • 500+ employees     6.2%

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.

You May Also Like

The New Classroom: How The Australian Institute of Business is Redefining Online Learning

MBA Blog / 19th June 2024

Alexandra Skinner talks to the Australian Institute of Business   As modern professionals seek further education opportunities that suit their evolving needs, there has been a significant shift towards online...

How Can Leaders Build the Confidence to be Disruptive?

Entrepreneurs / 17th June 2024

Regardless of how you feel about yourself, the moment you gain the title ‘manager’, ‘executive’ or ‘boss’, everything changes. Even with a direct report of just one, you gain the...