ADP: Private Sector Employment and Compensation Increase in August

According to the ADP National Employment Report released on Wednesday, private sector employment increased by 38,000 jobs in August. Year-over-year, base pay rose 3.2%, while gross pay increased 4.7%.

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.

Commenting on the report, ADP Chief Economist Nela Richardson said:

“Pay can tell us a lot about today’s choppy hiring. To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom. Once predictable wage growth has been overtaken by complexities of demographic change, persistent inflation, and AI’s effects on jobs. Our new Pay Insights report, with its enhanced data, can more fully reveal the dynamics of today’s labor market.”