ADP National Employment Report: Private Sector Employment Increased by 122,000 Jobs in July; Annual Pay was Up 4.8%

Rhea-AI Summary

The July 2024 ADP National Employment Report shows private sector employment increased by 122,000 jobs, with annual pay up 4.8% year-over-year. Key highlights include:

- Goods-producing sectors added 37,000 jobs, while service-providing sectors added 85,000 jobs
- The South region led job growth with 55,000 new positions
- Medium-sized establishments (50-499 employees) saw the largest increase, adding 70,000 jobs
- Pay gains for job-stayers slowed to 4.8%, the lowest in three years
- Job-changers experienced a significant drop in pay gains, decreasing to 7.2% from 7.7%

Nela Richardson, ADP's chief economist, noted that the labor market is aligning with the Federal Reserve's efforts to slow inflation, as evidenced by abating wage growth.

Positive

• Private sector employment increased by 122,000 jobs in July
• Annual pay was up 4.8% year-over-year
• Construction sector added 39,000 jobs
• Trade/transportation/utilities sector added 61,000 jobs
• Large establishments (500+ employees) added 62,000 jobs

Negative

• Job creation edged down compared to previous month
• Manufacturing sector lost 4,000 jobs
• Information sector lost 18,000 jobs
• Professional/business services sector lost 37,000 jobs
• Small establishments (1-49 employees) lost 7,000 jobs
• Pay gains for job-changers slowed significantly from 7.7% to 7.2%

ROSELAND, N.J., July 31, 2024 /PRNewswire/ -- Private sector employment increased by 122,000 jobs in July and annual pay was up 4.8 percent year-over-year, according to the July ADP^® National Employment Report™ 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.

"With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation," said Nela Richardson, chief economist, ADP. "If inflation goes back up, it won't be because of labor."

July 2024 Report Highlights*

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

JOBS REPORT

Private employers added 122,000 jobs in July
Job creation edged down as pay gains continued to slow.

Change in U.S. Private Employment:     122,000

Change by Industry Sector

- Goods-producing:     37,000

• Natural resources/mining     2,000
• Construction     39,000
• Manufacturing     -4,000

- Service-providing:     85,000

• Trade/transportation/utilities     61,000
• Information     -18,000
• Financial activities     14,000
• Professional/business services     -37,000
• Education/health services     22,000
• Leisure/hospitality     24,000
• Other services     19,000

Change by U.S. Regions

- Northeast:     21,000

• New England     -2,000
• Middle Atlantic     23,000

- Midwest:     17,000

• East North Central     21,000
• West North Central     -4,000

- South:     55,000

• South Atlantic     32,000
• East South Central     2,000
• West South Central     21,000

- West:     32,000

• Mountain     16,000
• Pacific     16,000

Change by Establishment Size

- Small establishments:     -7,000

• 1-19 employees     15,000
• 20-49 employees     -22,000

- Medium establishments:     70,000

• 50-249 employees     55,000
• 250-499 employees     15,000

- Large establishments:     62,000

• 500+ employees     62,000

PAY INSIGHTS

Pay gains slowed in July
Year-over-year pay gains for job-stayers slowed to 4.8 percent in July, the slowest pace of growth in three years. Job-changers saw a big drop, with pay gains slowing to 7.2 percent from 7.7 percent.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers     4.8%

- Job-Changers     7.2%

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

- Goods-producing:                                                       

• Natural resources/mining     4.0%
• Construction     5.3%
• Manufacturing     4.7%

- Service-providing:                                               

• Trade/transportation/utilities     4.6%
• Information     4.4%
• Financial activities     5.0%
• Professional/business services     4.7%
• Education/health services     5.2%
• Leisure/hospitality     4.9%
• Other services     5.0%

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

- Small firms:                                                                

• 1-19 employees     4.1%
• 20-49 employees     4.7%

- Medium firms:                                                             

• 50-249 employees     5.0%
• 250-499 employees     4.9%

- Large firms:                                                                

• 500+ employees     4.8%

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 June total of jobs added was revised from 150,000 to 155,000. 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 August 2024 ADP National Employment Report will be released at 8:15 a.m. ET on September 5, 2024.

About the ADP® National Employment Report™
The ADP National Employment Report is an independent measure 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.

About the ADP Research Institute®
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.

About ADP (NASDAQ – ADP)
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 © 2024 ADP, Inc. All rights reserved.

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SOURCE ADP, Inc.

FAQ

How many private sector jobs were added in July 2024 according to the ADP National Employment Report?

According to the ADP National Employment Report, private sector employment increased by 122,000 jobs in July 2024.

What was the annual pay increase for job-stayers in July 2024?

The annual pay increase for job-stayers was 4.8% in July 2024, which is the slowest pace of growth in three years.

Which industry sector added the most jobs in July 2024?

The trade/transportation/utilities sector added the most jobs in July 2024, with an increase of 61,000 positions.

How did pay gains for job-changers change in July 2024?

Pay gains for job-changers slowed to 7.2% in July 2024, down from 7.7% in the previous month.

What did ADP's chief economist say about the July 2024 employment report?

Nela Richardson, ADP's chief economist, stated that with wage growth abating, the labor market is aligning with the Federal Reserve's efforts to slow inflation.