ADP® Reports Increased Private Sector Employment and Compensation Gains in August

According to the ADP® National Employment Report™ released Wednesday (8-30-23), nonfarm private sector employment increased by 177,000 jobs in August and annual pay was up 5.9% year-over-year. The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with 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 US employees. 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 near real-time measure of US 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.

Adding additional background and her analysis to the report, Nela Richardson, ADP’s chief economist, said:

“This month’s numbers are consistent with the pace of job creation before the pandemic. After two years of exceptional gains tied to the recovery, we’re moving towards more sustainable growth in pay and employment as the economic effects of the pandemic recede.”