ADP® Reports Private Sector Employment Increased in May; Compensation Gains Steady

According to the ADP® National Employment Report™ released on Wednesday, private sector employment increased by 152,000 jobs in May and annual compensation gains held steady at 5.0%, 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 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 results of the report, ADP Chief Economist Nela Richardson said:

“Job gains and pay growth are slowing going into the second half of the year. The labor market is solid, but we’re monitoring notable pockets of weakness tied to both producers and consumers.”