Private Sector Employment Increases While Compensation Growth Slows in July, ADP® Reports

According to the ADP® National Employment Report™ released on Wednesday, private sector employment increased by 122,000 jobs in July. Year-over-year, annual compensation was up 4.8%.

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 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 report, ADP Chief Economist Nela Richardson said:

“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation. If inflation goes back up, it won’t be because of labor.”