ADP® Reports Private Sector Employment Gains but Reduced Compensation in April

According to the ADP® National Employment Report™ released Wednesday (5-3-23), nonfarm private sector employment increased by 296,000 jobs in April, and annual pay was up 6.7% 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 jobs report and pay insights use ADP’s fine-grained anonymized and aggregated 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 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 March report, Dr. Nela Richardson, ADP’s chief economist, said:

“The slowdown in pay growth gives the clearest signal of what’s going on in the labor market right now. Employers are hiring aggressively while holding pay gains in check as workers come off the sidelines. Our data also shows fewer people are switching jobs.”