ROSELAND, N.J., Jan. 31,
2024 /PRNewswire/ -- Private sector employment
increased by 107,000 jobs in January and annual pay was up 5.2
percent year-over-year, according to the January ADP®
National Employment Report™ produced by the ADP Research
Institute® in collaboration with the 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 jobs report and pay insights use ADP's fine-grained
anonymized and aggregated payroll data to provide a representative
picture of the private-sector labor market. 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 a
high-frequency, 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 earnings of a
cohort of almost 10 million employees over a 12-month period.
"Progress on inflation has brightened the economic picture
despite a slowdown in hiring and pay," said Nela Richardson, chief economist, ADP. "Wages
adjusted for inflation have improved over the past six months, and
the economy looks like it's headed toward a soft landing in the
U.S. and globally."
January 2024 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
Jobs Report
Private employers added 107,000 jobs in January
The
hiring slowdown of 2023 spilled into January, and pressure on wages
continues to ease. The pay premium for job-switchers shrank to a
new low last month.
Change in U.S. Private Employment:
107,000
Change by Industry Sector
- Goods-producing: 30,000
- Natural resources/mining 6,000
- Construction 22,000
- Manufacturing 2,000
- Service-providing: 77,000
- Trade/transportation/utilities 23,000
- Information -9,000
- Financial activities 7,000
- Professional/business services 2,000
- Education/health services 17,000
- Leisure/hospitality 28,000
- Other services 9,000
Change by U.S. Regions
- Northeast: 32,000
- New England 5,000
- Middle Atlantic 27,000
- Midwest: 24,000
- East North Central 17,000
- West North Central 7,000
- South: 57,000
- South Atlantic 39,000
- East South Central -1,000
- West South Central 19,000
- West: 2,000
Change by Establishment Size
- Small establishments: 25,000
- 1-19 employees 19,000
- 20-49 employees 6,000
- Medium establishments: 61,000
- 50-249 employees 53,000
- 250-499 employees 8,000
- Large establishments: 31,000
Pay Insights
Pay gains continued to shrink in
January
Year-over-year pay gains for job-stayers reached 5.2
percent in January, down from 5.4 percent in December. For
job-changers, pay was up 7.2 percent, the smallest annual gain
since May 2021.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 5.2%
-
Job-Changers 7.2%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
-
Goods-producing:
- Natural resources/mining 4.7%
- Construction 5.6%
- Manufacturing 4.8%
-
Service-providing:
- Trade/transportation/utilities 4.7%
- Information 4.5%
- Financial activities 5.6%
- Professional/business services 5.1%
- Education/health services 5.9%
- Leisure/hospitality 6.3%
- Other services 5.5%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small
firms:
- 1-19 employees 4.5%
- 20-49 employees 5.4%
- Medium
firms:
- 50-249 employees 5.5%
- 250-499 employees 5.4%
- Large
firms:
To see Pay Insights by U.S. State, Gender, and Age for
Job-Stayers, visit here:
* Sum of components may not equal total, due to rounding.
The December total of jobs added was revised from 164,000 to
158,000. The historical data file, and weekly data for the previous
month, is available at https://adpemploymentreport.com/.
January's report presents the scheduled annual revision of the
ADP National Employment Report, which updates the data series to be
consistent with the annual Quarterly Census of Employment and Wages
(QCEW) benchmark data for March 2023.
In addition, this revision introduces technical updates, namely, in
re-weighting of ADP data to match QCEW data. The historical file
was updated to reflect these revisions.
To subscribe to monthly email alerts or obtain additional
information about the ADP National Employment Report, including
employment and pay data, interactive charts, methodology, and a
calendar of release dates, please visit
https://adpemploymentreport.com/.
The February 2024 ADP National
Employment Report will be released at 8:15 a.m. ET on March 6,
2024.
About the ADP® National Employment Report™
The
ADP National Employment Report is an independent measure of the
change in U.S. private employment and pay derived from actual,
anonymized payroll data of client companies served by ADP, a
leading provider of human capital management solutions. The report
is produced by ADP Research Institute in collaboration with the
Stanford Digital Economy Lab.
The ADP National Employment Report is broadly distributed to the
public each month, free of charge, as part of the company's
commitment to offering deeper insights of the U.S. labor market and
providing businesses and governments with a source of credible and
valuable information.
About the ADP Research Institute®
The ADP Research
Institute delivers data-driven discoveries about the world of work
and derives reliable economic indicators from these insights. We
offer these findings as a unique contribution to making the world
of work better and more productive by delivering actionable
insights to the economy at large.
About ADP (NASDAQ – ADP)
Designing better ways to work
through cutting-edge products, premium services and exceptional
experiences that enable people to reach their full potential.
HR, Talent, Time Management, Benefits and Payroll. Informed by data
and designed for people. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People,
ADP National Employment Report, and ADP Research Institute are
registered trademarks of ADP, Inc. All other marks are the property
of their respective owners.
Copyright © 2024 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.