Private-Sector Employment Increased by 132K Jobs in August; Annual Pay Up 7.6%

On Sep 2, 2022

Private-sector employment increased by 132,000 jobs in August and annual pay was up 7.6% according to the August ADP® National Employment Report™ produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab (Stanford Lab).

The jobs report and pay insights use ADP payroll data of over 25 million US 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 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.”

Jobs Report

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.

Change in U.S. Private Employment: 132,000

Change by Industry Sector

• Goods-producing: 23,000
  • Natural resources/mining 2,000
  • Construction 21,000
  • Manufacturing 0
• Service-providing: 110,000
  • Trade/transportation/utilities 54,000
  • Information -1,000
  • Financial activities -20,000
  • Professional/business services -14,000
    Education/health services -15,000
  • Leisure/hospitality 96,000
  • Other services 10,000

Change by U.S. Regions

• Northeast: 23,000
  • New England 4,000
  • Middle Atlantic 19,000
• Midwest: -7,000
  • East North Central 24,000
  • West North Central -31,000
• South: 76,000
  • South Atlantic 33,000
  • East South Central 24,000
  • West South Central 19,000
• West: 40,000
  • Mountain 37,000
  • Pacific 3,000

Change by Establishment Size

• Small establishments: 25,000
  • 1-19 employees -47,000
  • 20-49 employees 72,000
• Medium establishments: 53,000
  • 50-249 employees 74,000
  • 250-499 employees -21,000
• Large establishments: 54,000
  • 500+ employees 54,000

Pay Insights

Pay Growth has Stabilized at Elevated Levels

Year-over-year change in annual pay was 7.6 percent in August, in line with monthly readings since Spring 2022. In early 2021, annual pay increases were running at about 2 percent. While the pace of pay increases is elevated, its growth has flattened.

Median Change in Annual Pay (ADP matched person sample)

• Job-Stayers 7.6%
• Job-Changers 16.1%

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

• Goods-producing:
  • Natural resources/mining 8%
  • Construction 6.7%
  • Manufacturing 7.6%
• Service-providing:
  • Trade/transportation/utilities 8.4%
  • Information 7.4%
  • Financial activities 7.4%
  • Professional/business services 6.8%
  • Education/health services 6.8%
  • Leisure/hospitality 12.1%
  • Other services 6.8%

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

• Small firms:
  • 1-19 employees 5.4%
  • 20-49 employees 7.2%
• Medium firms:
  • 50-249 employees 7.9%
  • 250-499 employees 7.8%
• Large firms:
  • 500+ employees 8.3%

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