ADP National Employment Report: Private Sector Employment Increased by 132,000 Jobs in August; Annual Pay was Up 7.6%

ROSELAND, N.J., Aug. 31, 2022 /PRNewswire/ -- Private sector employment increased by 132,000 jobs in August and annual pay was up 7.6% according to the August ADP^® National Employment Report™ produced by the ADP Research Institute^® in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data of over 25 million U.S. employees to provide a representative picture of the labor market. The report details the current month's total private employment change, and weekly job data from the previous month. ADP's pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

"Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy's conflicting signals," said Nela Richardson, chief economist, ADP. "We could be at an inflection point, from super-charged job gains to something more normal."

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

Private employers created 132,000 jobs in August, a step down from the month before, when the economy created nearly 270,000 jobs.  Payroll growth also slowed in July when compared to June of this year.

Change in U.S. Private Employment:     132,000

Change by Industry Sector
- Goods-producing:     23,000

• Natural resources/mining     2,000
• Construction     21,000
• Manufacturing     0

- Service-providing:     110,000

• Trade/transportation/utilities     54,000
• Information     -1,000
• Financial activities     -20,000
• Professional/business services     -14,000
• Education/health services     -15,000
• Leisure/hospitality     96,000
• Other services     10,000

Change by U.S. Regions
- Northeast:     23,000

• New England     4,000
• Middle Atlantic     19,000

- Midwest:     -7,000

• East North Central     24,000
• West North Central     -31,000

- South:     76,000

• South Atlantic     33,000
• East South Central     24,000
• West South Central     19,000

- West:     40,000

• Mountain     37,000
• Pacific     3,000

Change by Establishment Size
- Small establishments:     25,000

• 1-19 employees     -47,000
• 20-49 employees     72,000

- Medium establishments:     53,000

• 50-249 employees     74,000
• 250-499 employees     -21,000

- Large establishments:     54,000

• 500+ employees     54,000

Year-over-year change in annual pay was 7.6 percent in August, in line with monthly readings since Spring 2022. In early 2021, annual pay increases were running at about 2 percent. While the pace of pay increases is elevated, its growth has flattened.

Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers     7.6%
- Job-Changers     16.1%

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

• Natural resources/mining     8%
• Construction     6.7%
• Manufacturing     7.6%

- Service-providing:                                               

• Trade/transportation/utilities     8.4%
• Information     7.4%
• Financial activities     7.4%
• Professional/business services     6.8%
• Education/health services     6.8%
• Leisure/hospitality     12.1%
• Other services     6.8%

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

• 1-19 employees     5.4%
• 20-49 employees     7.2%

- Medium firms:                                                             

• 50-249 employees     7.9%
• 250-499 employees     7.8%

- Large firms:                                                                

• 500+ employees     8.3%

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 historical data file, and weekly data for the previous month, is available at https://adpemploymentreport.com/.

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 2022ADP National Employment Report will be released at 8:15 a.m. ET on October 5, 2022.

The ADP National Employment Report is an independent estimate  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.

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.

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 © 2022 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-132-000-jobs-in-august-annual-pay-was-up-7-6-301615469.html

SOURCE ADP, Inc.