ADP® Reports Private Sector Employment Increased and Compensation Held Steady in August

According to the ADP® National Employment Report™ released on Thursday, private sector employment increased by 99,000 jobs in August. Year-over-year, annual compensation was up 4.8%, unchanged from July.

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 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 employees over a 12-month period.

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

“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth. The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown.”