ADP National Employment Report: Private Sector Employment Increased by 152,000 Jobs in May; Annual Pay was Up 5.0%

Rhea-AI Summary

According to the ADP National Employment Report for May 2024, private sector employment increased by 152,000 jobs, with annual pay rising by 5.0% year-over-year. However, job and pay growth are slowing. Manufacturing faced a steep decline, losing 20,000 jobs, while leisure and hospitality also saw weaker hiring. In contrast, the trade/transportation/utilities sector added 55,000 jobs, and construction gained 32,000 jobs. Regionally, the South added the most jobs (101,000), while the West lost 10,000 jobs. Small establishments saw a decrease of 10,000 jobs, whereas large establishments added 98,000 jobs. Pay gains for job-changers slowed, up 7.8%, while job-stayers saw a 5.0% increase.

Positive

• Private sector employment increased by 152,000 jobs in May 2024.
• Annual pay rose by 5.0% year-over-year.
• Trade/transportation/utilities sector added 55,000 jobs.
• Construction sector gained 32,000 jobs.
• Large establishments (500+ employees) added 98,000 jobs.

Negative

• Job gains and pay growth are slowing.
• Manufacturing sector faced a steep decline, losing 20,000 jobs.
• Leisure and hospitality showed weaker hiring.
• The West region lost 10,000 jobs.
• Small establishments saw a decrease of 10,000 jobs.

ROSELAND, N.J., June 5, 2024 /PRNewswire/ -- Private sector employment increased by 152,000 jobs in May and annual pay was up 5.0 percent year-over-year, according to the May ADP^® National Employment Report^TM 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.

"Job gains and pay growth are slowing going into the second half of the year," said Nela Richardson, chief economist, ADP. "The labor market is solid, but we're monitoring notable pockets of weakness tied to both producers and consumers." 

May 2024 Report Highlights*

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

JOBS REPORT

Private employers added 152,000 jobs in May
Job gains were slower in May due to a steep decline in manufacturing. Leisure and hospitality also showed weaker hiring.

Change in U.S. Private Employment:     152,000

Change by Industry Sector

- Goods-producing:     3,000

• Natural resources/mining     -9,000
• Construction     32,000
• Manufacturing     -20,000

- Service-providing:     149,000

• Trade/transportation/utilities     55,000
• Information     -7,000
• Financial activities     28,000
• Professional/business services     -6,000
• Education/health services     46,000
• Leisure/hospitality     12,000
• Other services     21,000

Change by U.S. Regions

- Northeast:     44,000

• New England     -1,000
• Middle Atlantic     45,000

- Midwest:     9,000

• East North Central     6,000
• West North Central     3,000

- South:     101,000

• South Atlantic     45,000
• East South Central     -4,000
• West South Central     60,000

- West:     -10,000

• Mountain     8,000
• Pacific     -18,000

Change by Establishment Size

- Small establishments:     -10,000

• 1-19 employees     26,000
• 20-49 employees     -36,000

- Medium establishments:     79,000

• 50-249 employees     49,000
• 250-499 employees     30,000

- Large establishments:     98,000

• 500+ employees     98,000

PAY INSIGHTS

Pay gains for job-changers slowed in May
Year-over-year pay gains for job-changers fell for the second month. Pay for job-changers was up 7.8 percent while pay growth for job-stayers held steady for the third month at 5 percent.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers     5.0%

- Job-Changers     7.8%

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

- Goods-producing:                                                       

• Natural resources/mining     4.4%
• Construction     5.3%
• Manufacturing     4.7%

- Service-providing:                                               

• Trade/transportation/utilities     4.6%
• Information     4.6%
• Financial activities     5.1%
• Professional/business services     4.8%
• Education/health services     5.5%
• Leisure/hospitality     5.5%
• Other services     5.3%

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

- Small firms:                                                                

• 1-19 employees     4.2%
• 20-49 employees     5.0%

- Medium firms:                                                             

• 50-249 employees     5.2%
• 250-499 employees     5.0%

- Large firms:                                                                

• 500+ employees     4.9%

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 April total of jobs added was revised from 192,000 to 188,000. The historical data file, and weekly data for the previous month, is available at https://adpemploymentreport.com/.

The April Pay Insights numbers have also been revised from 9.3 percent to 8 percent for job-changers due to a process correction in March to the Pay Insights data.

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 June 2024 ADP National Employment Report will be released at 8:15 a.m. ET on July 3, 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

What is the current state of private sector employment according to the ADP report for May 2024?

Private sector employment increased by 152,000 jobs in May 2024.

How much did annual pay increase in the ADP National Employment Report for May 2024?

Annual pay increased by 5.0% year-over-year.

Which sector added the most jobs according to the ADP report for May 2024?

The trade/transportation/utilities sector added 55,000 jobs.

Which region added the most jobs in May 2024 according to ADP?

The South region added 101,000 jobs.

How did small establishments fare in the May 2024 ADP report?

Small establishments saw a decrease of 10,000 jobs.

What was the job growth for job-changers in the May 2024 ADP report?

Job-changers saw a pay increase of 7.8%.

How did the manufacturing sector perform in the May 2024 ADP report?

The manufacturing sector lost 20,000 jobs.

What is the significance of the ADP National Employment Report?

The ADP National Employment Report provides a near real-time measure of U.S. private-sector employment based on anonymized payroll data from over 25 million employees.