ADP National Employment Report: Private Sector Employment Increased by 184,000 Jobs in March; Annual Pay was Up 5.1%

ROSELAND, N.J., April 3, 2024 /PRNewswire/ -- Private sector employment increased by 184,000 jobs in March and annual pay was up 5.1 percent year-over-year, according to the March 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.

"March was surprising not just for the pay gains, but the sectors that recorded them. The three biggest increases for job-changers were in construction, financial services, and manufacturing," said Nela Richardson, chief economist, ADP. "Inflation has been cooling, but our data shows pay is heating up in both goods and services."

March 2024 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

JOBS REPORT

Private employers added 184,000 jobs in March
Last month saw the biggest jump in hiring since July, led by leisure and hospitality. Job gains were strong across industries with the exception of professional services, where hiring fell.

Change in U.S. Private Employment: 184,000

Change by Industry Sector

- Goods-producing: 42,000

Natural resources/mining 8,000
Construction 33,000
Manufacturing 1,000

- Service-providing: 142,000

Trade/transportation/utilities 29,000
Information 8,000
Financial activities 17,000
Professional/business services -8,000
Education/health services 17,000
Leisure/hospitality 63,000
Other services 16,000

Change by U.S. Regions

- Northeast: 20,000

New England -1,000
Middle Atlantic 21,000

- Midwest: 28,000

East North Central 12,000
West North Central 16,000

- South: 91,000

South Atlantic 49,000
East South Central 26,000
West South Central 16,000

- West: 53,000

Mountain 21,000
Pacific 32,000

Change by Establishment Size

- Small establishments: 16,000

1-19 employees 27,000
20-49 employees -11,000

- Medium establishments: 93,000

50-249 employees 63,000
250-499 employees 30,000

- Large establishments: 87,000

500+ employees 87,000

PAY INSIGHTS

Pay gains for job-changers jumped in March
For job-stayers, year-over-year pay gains were flat at 5.1 percent after months of steady deceleration. At the same time, gains for job-changers rose dramatically to 10 percent, the second straight increase.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers 5.1%

- Job-Changers 10.0%

Median Change in Annual Pay for Job-Stayers by Industry Sector

- Goods-producing:

Natural resources/mining 4.7%
Construction 5.7%
Manufacturing 4.6%

- Service-providing:

Trade/transportation/utilities 4.7%
Information 4.8%
Financial activities 5.3%
Professional/business services 5.0%
Education/health services 5.7%
Leisure/hospitality 5.8%
Other services 5.6%

Median Change in Annual Pay for Job-Stayers by Firm Size

- Small firms:

1-19 employees 4.7%
20-49 employees 5.2%

- Medium firms:

50-249 employees 5.3%
250-499 employees 5.1%

- Large firms:

500+ employees 4.9%

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 February total of jobs added was revised from 140,000 to 155,000. 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 April 2024 ADP National Employment Report will be released at 8:15 a.m. ET on May 1, 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.

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