ADP Reports Increased Private Sector Employment and Compensation Gains in January

According to the ADP® National Employment Report™ released on Wednesday, nonfarm private sector employment increased by 107,000 jobs in January and annual pay was up 5.2% 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 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 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 earning of a cohort of almost 10 million employes over a 12-month period.

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

“Progress on inflation has brightened the economic picture despite a slowdown in hiring and pay. Wages adjusted for inflation have improved over the past six months, and the economy looks like it’s headed toward a soft landing in the US and globally.”