ROSELAND, N.J., Jan. 4, 2024
/PRNewswire/ -- Private sector employment increased by 164,000
jobs in December and annual pay was up 5.4 percent year-over-year,
according to the December ADP® National Employment
ReportTM 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.
"We're returning to a labor market that's very much aligned with
pre-pandemic hiring," said Nela
Richardson, chief economist, ADP. "While wages didn't drive
the recent bout of inflation, now that pay growth has retreated,
any risk of a wage-price spiral has all but disappeared."
December 2023 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 164,000 jobs in December
Job
gains rose for the fourth straight month, led by a healthy bump in
leisure and hospitality hiring. Construction held strong in the
face of high interest rates, but manufacturing continued to
struggle, notching another month of losses.
Change in U.S. Private Employment:
164,000
Change by Industry Sector
- Goods-producing: 9,000
- Natural resources/mining -2,000
- Construction 24,000
- Manufacturing -13,000
- Service-providing:
155,000
- Trade/transportation/utilities 15,000
- Information -2,000
- Financial activities 18,000
- Professional/business services 1,000
- Education/health services 42,000
- Leisure/hospitality 59,000
- Other services 22,000
Change by U.S. Regions
- Northeast: 94,000
- New England 28,000
- Middle Atlantic 66,000
- Midwest: -21,000
- East North Central -16,000
- West North Central -5,000
- South: -7,000
- South Atlantic -3,000
- East South Central -6,000
- West South Central 2,000
- West: 109,000
- Mountain 29,000
- Pacific 80,000
Change by Establishment Size
- Small establishments: 74,000
- 1-19 employees 54,000
- 20-49 employees 20,000
- Medium establishments: 53,000
- 50-249 employees 58,000
- 250-499 employees -5,000
- Large establishments: 40,000
PAY INSIGHTS
Pay growth slowed in December
Pay for job-stayers rose
5.4 percent in December, slowing from 5.6 percent a month earlier
and continuing a deceleration that began in September 2022.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 5.4%
- Job-Changers 8.0%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
-
Goods-producing:
- Natural resources/mining 4.9%
- Construction 6.0%
- Manufacturing 5.1%
- Service-providing:
- Trade/transportation/utilities 5.2%
- Information 4.8%
- Financial activities 5.9%
- Professional/business services 5.2%
- Education/health services 5.9%
- Leisure/hospitality 6.4%
- Other services 5.6%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small firms:
- 1-19 employees 4.6%
- 20-49 employees 5.6%
- Medium firms:
- 50-249 employees 5.7%
- 250-499 employees 5.5%
- 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 November total of jobs added was revised from 103,000 to
101,000. The historical data file, and weekly data for the previous
month, is available at https://adpemploymentreport.com/.
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 January 2024 ADP National
Employment Report will be released at 8:15 a.m. ET on January
31, 2024.
About the ADP® National Employment
ReportTM
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.