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.
