ADP® Reports Private Sector Employment Increased but Compensation Growth Slowed in June 2024

According to the ADP® National Employment Report™, released on Wednesday (7-3-24), private sector employment increased by 150,000 jobs in June. Year-Over-Year annual compensation was up 4.9%, the lowest growth in nearly 3 years.

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 U.S. 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 U.S. 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.

Adding additional background to the January report ADP’s Chief Economist Dr. Nela Richardson – PhD. – Economics, said, “Job growth has been solid, but not broad-based. Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.”