Private sector employment increased by 132,000 jobs in August and annual pay was up 7.6% according to the August ADP® National Employment ReportTM 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.”
Job Growth Slowed for Second-straight Month in August
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.
Pay Growth has Stabilized at Elevated Levels
Year-over-year change in annual pay was 7.6% in August, in line with monthly readings since Spring 2022. In early 2021, annual pay increases were running at about 2%. While the pace of pay increases is elevated, its growth has flattened.
