ADP National Employment Report: Private Sector Employment Increased by 62,000 Jobs in April; Annual Pay was Up 4.5%

Rhea-AI Summary

ADP's National Employment Report shows private sector jobs increased by 62,000 in April 2025, with annual pay rising 4.5% year-over-year. The report, based on payroll data from over 25 million U.S. employees, reveals mixed performance across sectors.

Key findings include:

• Goods-producing sectors added 26,000 jobs
• Service-providing sectors gained 34,000 jobs
• Education/health services lost 23,000 jobs
• Job-changers saw pay increases of 6.9%

By establishment size, small businesses added 11,000 jobs, medium establishments gained 40,000, and large companies increased by 12,000. Regional performance varied, with the Midwest leading at 42,000 jobs added, while the South showed minimal growth at 3,000 jobs. The March employment figures were revised down from 155,000 to 147,000 jobs.

Positive

• Private sector added 62,000 jobs in April 2025
• Annual pay growth remains strong at 4.5% for job-stayers
• Job-changers saw increased pay gains of 6.9%, up from 6.7% in March
• Medium-sized establishments showed strongest job growth with 40,000 new positions
• Financial activities sector showed robust pay growth at 5.1%

Negative

• Total job additions significantly lower than March's 147,000
• Education/health services lost 23,000 jobs
• Information sector declined by 8,000 jobs
• Professional/business services showed negative growth (-2,000 jobs)
• Small businesses (20-49 employees) lost 9,000 jobs
• West South Central region lost 43,000 jobs

Insights

Economic Analyst

ADP reports significant job growth slowdown to 62,000 in April, with mixed sectoral performance while wage growth remains elevated.

The April 2025 ADP National Employment Report shows private sector job growth significantly decelerated to just 62,000, down from March's revised 147,000 – a 58% drop. This represents the slowest pace of private job creation in recent months.

The sectoral breakdown reveals concerning developments with several major sectors shedding jobs: education/health services (-23,000), information (-8,000), and professional/business services (-2,000). Goods-producing sectors contributed 26,000 jobs while service-providing sectors added a modest 34,000.

Despite the hiring slowdown, wage pressures persist. Annual pay for job-stayers grew at 4.5% year-over-year, showing only slight deceleration from March. More notably, job-changers saw wage growth accelerate to 6.9%, up from 6.7% in March – indicating continued competition for talent despite broader hiring hesitation.

The regional data reveals striking disparities: East South Central added 54,000 jobs while West South Central lost 43,000. This geographic imbalance suggests localized economic factors rather than uniform national trends.

Dr. Nela Richardson, ADP's chief economist, aptly characterized the current environment as one of "unease," with employers navigating policy and consumer uncertainty against a backdrop of generally positive economic indicators. This mixed labor market report suggests businesses are taking a more cautious approach to hiring while still maintaining competitive compensation to retain and attract talent.

ROSELAND, N.J., April 30, 2025 /PRNewswire/ -- Private sector employment increased by 62,000 jobs in April and annual pay was up 4.5 percent year-over-year, according to the April ADP^® National Employment Report™ produced by ADP Research 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. As of January 2025, ADP's Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.

"Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data," said Dr. Nela Richardson, chief economist, ADP. "It can be difficult to make hiring decisions in such an environment."

April 2025 Report Highlights*

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

JOBS REPORT

Private employers added 62,000 jobs in April
Education and health services, information, and professional and business services lost jobs, while hiring in other sectors was moderate.

Change in U.S. Private Employment:     62,000

Change by Industry Sector 

- Goods-producing:     26,000

• Natural resources/mining     6,000
• Construction     16,000
• Manufacturing     4,000

- Service-providing:     34,000

• Trade/transportation/utilities     21,000
• Information     -8,000
• Financial activities     20,000
• Professional/business services     -2,000
• Education/health services     -23,000
• Leisure/hospitality     27,000
• Other services     -1,000

Change by U.S. Regions

- Northeast:     10,000

• New England     -33,000
• Middle Atlantic     43,000

- Midwest:     42,000

• East North Central     39,000
• West North Central     3,000

- South:     3,000

• South Atlantic     -8,000
• East South Central     54,000
• West South Central     -43,000

- West:     9,000

• Mountain     8,000
• Pacific     1,000

Change by Establishment Size

- Small establishments:     11,000

• 1-19 employees     20,000
• 20-49 employees     -9,000

- Medium establishments:     40,000

• 50-249 employees     21,000
• 250-499 employees     19,000

- Large establishments:     12,000

• 500+ employees     12,000

PAY INSIGHTS

Pay gains were steady in April
Pay for job-stayers rose 4.5 percent in April from a year earlier, a slight deceleration from March. Year-over-year pay gains for job-changers accelerated, rising from 6.7 percent in March to 6.9 percent in April.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers     4.5%
- Job-Changers     6.9%

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

- Goods-producing:                                                       

• Natural resources/mining     4.4%
• Construction     4.7%
• Manufacturing     4.6%

- Service-providing:                                               

• Trade/transportation/utilities     4.3%
• Information     4.1%
• Financial activities     5.1%
• Professional/business services     4.3%
• Education/health services     4.7%
• Leisure/hospitality     4.7%
• Other services     4.3%

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

- Small firms:                                                                

• 1-19 employees     2.8%
• 20-49 employees     4.2%

- Medium firms:                                                             

• 50-249 employees     4.8%
• 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 March total number of jobs added was revised from 155,000 to 147,000. The historical data file and weekly data for the previous month are 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 May 2025 ADP National Employment Report will be released at 8:15 a.m. ET on June 4, 2025.

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 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
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policymakers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.

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, ADP Research Institute and ADP Research are trademarks of ADP, Inc. All other marks are the property of their respective owners.

Copyright © 2025 ADP, Inc. All rights reserved.

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SOURCE ADP, Inc.

FAQ

How many jobs did ADP report were added to private sector employment in April 2025?

According to the April 2025 ADP National Employment Report, private sector employment increased by 62,000 jobs, with goods-producing sectors adding 26,000 jobs and service-providing sectors adding 34,000 jobs.

What is the annual pay increase for job-stayers according to ADP's April 2025 report?

ADP reported that pay for job-stayers rose 4.5% in April 2025 compared to the previous year, showing a slight deceleration from March.

Which industries showed job losses in ADP's April 2025 employment report?

According to ADP's April 2025 report, three sectors showed job losses: Education and health services (-23,000), Information (-8,000), and Professional and business services (-2,000).

How much higher is the pay increase for job-changers vs job-stayers in ADP's April 2025 report?

In April 2025, ADP reported that job-changers saw a 6.9% pay increase, which is 2.4 percentage points higher than the 4.5% increase for job-stayers.

What was the employment change by company size in ADP's April 2025 report?

ADP's April 2025 report showed small establishments added 11,000 jobs, medium establishments added 40,000 jobs, and large establishments (500+ employees) added 12,000 jobs.