ADP National Employment Report: Private Sector Employment Increased by 99,000 Jobs in August; Annual Pay was Up 4.8%
Rhea-AI Summary
The August ADP® National Employment Report™ reveals that private sector employment increased by 99,000 jobs in August 2024, while annual pay rose 4.8% year-over-year. This marks the fifth consecutive month of slowing job creation among private employers, indicating a cooling labor market. Key highlights include:
- Goods-producing sectors added 27,000 jobs
- Service-providing sectors added 72,000 jobs
- The South region led with 55,000 new jobs
- Medium establishments (50-499 employees) contributed the most with 68,000 jobs
- Pay gains remained stable at 4.8% for job-stayers and 7.3% for job-changers
The report, based on actual payroll data from over 25 million U.S. employees, provides a high-frequency, near real-time measure of U.S. employment and pay insights.
Positive
- Private sector employment increased by 99,000 jobs in August
- Annual pay rose 4.8% year-over-year
- Medium establishments (50-499 employees) added 68,000 jobs
- The South region led job growth with 55,000 new jobs
- Pay gains for job-changers remained strong at 7.3%
Negative
- Job creation among private employers slowed for the fifth straight month
- Small establishments (1-49 employees) lost 9,000 jobs
- Manufacturing sector lost 8,000 jobs
- Professional/business services sector lost 16,000 jobs
- July's job addition was revised down from 122,000 to 111,000
News Market Reaction 1 Alert
On the day this news was published, ADP declined 1.83%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
"The job market's downward drift brought us to slower-than-normal hiring after two years of outsized growth," said Nela Richardson, chief economist, ADP. "The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown."
August 2024 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 99,000 jobs in August
The labor market continued to cool in August. Job creation among private employers slowed for the fifth straight month and wage growth was stable.
Change in
Change by Industry Sector
- Goods-producing: 27,000
- Natural resources/mining 8,000
- Construction 27,000
- Manufacturing -8,000
- Service-providing: 72,000
- Trade/transportation/utilities 14,000
- Information -4,000
- Financial activities 18,000
- Professional/business services -16,000
- Education/health services 29,000
- Leisure/hospitality 11,000
- Other services 20,000
Change by
- Northeast: 24,000
- New England -6,000
- Middle Atlantic 30,000
- Midwest: 7,000
- East North Central 0
- West North Central 7,000
- South: 55,000
- South Atlantic 4,000
- East South Central 3,000
- West South Central 48,000
- West: 20,000
- Mountain 8,000
- Pacific 12,000
Change by Establishment Size
- Small establishments: -9,000
- 1-19 employees 3,000
- 20-49 employees -12,000
- Medium establishments: 68,000
- 50-249 employees 32,000
- 250-499 employees 36,000
- Large establishments: 42,000
- 500+ employees 42,000
PAY INSIGHTS
Pay gains were unchanged in August
Year-over-year pay gains were flat in August, remaining at 4.8 percent for job-stayers and 7.3 percent for job-changers.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers
- Job-Changers 7.
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:
- Natural resources/mining
3.9% - Construction
5.2% - Manufacturing
4.7%
- Service-providing:
- Trade/transportation/utilities
4.5% - Information
4.5% - Financial activities
5.0% - Professional/business services
4.7% - Education/health services
5.1% - Leisure/hospitality
4.9% - Other services
4.9%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees
4.0% - 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
* Sum of components may not equal total due to rounding.
ADP conducted a rebenchmarking of its employment data in August based on full-year 2023 results from the Quarterly Census of Employment and Wages (QCEW). This resulted in a decline of 9,000 jobs in the August ADP National Employment Report. ADP's full-year benchmarking will take place in February 2025 with the publication of the January 2025 report.
The July total of jobs added was revised from 122,000 to 111,000. 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 September 2024 ADP National Employment Report will be released at 8:15 a.m. ET on October 2, 2024.
About the ADP® National Employment Report™
The ADP National Employment Report is an independent measure of the change in
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
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
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SOURCE ADP, Inc.
FAQ
How many private sector jobs were added in August 2024 according to the ADP National Employment Report?
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