ROSELAND, N.J., June 1, 2023
/PRNewswire/ -- Private sector employment increased by 278,000 jobs
in May and annual pay was up 6.5 percent year-over-year, according
to the May ADP® National Employment
Report™ produced by the ADP Research Institute®
in collaboration with the Stanford Digital Economy Lab
("Stanford Lab").
The jobs report and pay insights use ADP's fine-grained
anonymized and aggregated payroll data of over 25 million U.S.
employees to provide a representative picture of the labor market.
The report details the current month's total private employment
change, and weekly job data from the previous month. ADP's pay
measure uniquely captures the earnings of a cohort of almost 10
million employees over a 12-month period.
"This is the second month we've seen a full percentage point
decline in pay growth for job changers," said Nela Richardson, chief economist, ADP. "Pay
growth is slowing substantially, and wage-driven inflation may be
less of a concern for the economy despite robust hiring."
May 2023 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 278,000 jobs in May
Job growth
is strong while pay growth continues to slow. But gains in private
employment were fragmented last month, with leisure and
hospitality, natural resources, and construction taking the lead.
Manufacturing and finance lost jobs.
Change in U.S. Private Employment:
278,000
Change by Industry Sector
- Goods-producing: 110,000
- Natural resources/mining 94,000
- Construction 64,000
- Manufacturing -48,000
- Service-providing:
168,000
- Trade/transportation/utilities 32,000
- Information -15,000
- Financial activities -35,000
- Professional/business services -5,000
- Education/health services -29,000
- Leisure/hospitality 208,000
- Other services 12,000
Change by U.S. Regions
- Northeast: 197,000
- New England 76,000
- Middle Atlantic 121,000
- Midwest: 139,000
- East North Central 75,000
- West North Central 64,000
- South: -204,000
- South Atlantic -77,000
- East South Central -33,000
- West South Central -94,000
- West: 134,000
- Mountain -36,000
- Pacific 170,000
Change by Establishment Size
- Small establishments: 235,000
- 1-19 employees 116,000
- 20-49 employees 119,000
- Medium establishments: 140,000
- 50-249 employees 112,000
- 250-499 employees 28,000
- Large establishments: -106,000
PAY INSIGHTS
Pay gains slowed again in May
Last month brought a
broad-based slowdown in pay increases. Job changers saw a gain of
12.1 percent, down a full percentage point from April. For job
stayers, the increase was 6.5 percent in May, down from 6.7
percent.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 6.5%
- Job-Changers 12.1%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
-
Goods-producing:
- Natural resources/mining 6.6%
- Construction 6.7%
- Manufacturing 5.9%
-
Service-providing:
- Trade/transportation/utilities 6.4%
- Information 5.8%
- Financial activities 6.7%
- Professional/business services 6.2%
- Education/health services 7.0%
- Leisure/hospitality 8.4%
- Other services 6.4%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small
firms:
- 1-19 employees 5.4%
- 20-49 employees 6.5%
- Medium
firms:
- 50-249 employees 6.8%
- 250-499 employees 6.6%
- 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 April total of jobs added was revised from 296,000 to
291,000. 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 June 2023 ADP National
Employment Report will be released at 8:15 a.m. ET on July 6,
2023.
About the ADP® National Employment
Report™ The ADP National Employment Report is an
independent estimate 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 © 2023 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.