Private sector employment increased by 150,000 jobs in June and annual pay was up 4.9 percent year-over-year, according to the June 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.
“Job growth has been solid, but not broad-based,” said Nela Richardson, chief economist, ADP. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.”
June 2024 Report Highlights
JOBS REPORT
Private employers added 150,000 jobs in June
Job creation among private employers slowed for the third straight month.
Change in U.S. Private Employment: 150,000
Change by Industry Sector
– Goods-producing: 14,000
- Natural resources/mining -8,000
- Construction 27,000
- Manufacturing -5,000
– Service-providing: 136,000
- Trade/transportation/utilities 15,000
- Information -3,000
- Financial activities 11,000
- Professional/business services 25,000
- Education/health services 9,000
- Leisure/hospitality 63,000
- Other services 16,000
Change by U.S. Regions
– Northeast: 31,000
- New England 7,000
- Middle Atlantic 24,000
– Midwest: 26,000
- East North Central 14,000
- West North Central 12,000
– South: 80,000
- South Atlantic 47,000
- East South Central -7,000
- West South Central 40,000
– West: 4,000
- Mountain 1,000
- Pacific 3,000
Change by Establishment Size
– Small establishments: 5,000
- 1-19 employees 13,000
- 20-49 employees -8,000
– Medium establishments: 88,000
- 50-249 employees 65,000
- 250-499 employees 23,000
– Large establishments: 58,000
- 500+ employees 58,000
PAY INSIGHTS
Pay gains for job-stayers slowed in June
Year-over-year pay gains for job-stayers were 4.9 percent in June, the slowest pace of growth since August 2021. Pay gains for job-changers also slowed, to 7.7 percent.
Median Change in Annual Pay (ADP matched person sample)
– Job-Stayers 4.9%
– Job-Changers 7.7%
Median Change in Annual Pay for Job-Stayers by Industry Sector
– Goods-producing:
- Natural resources/mining 4.2%
- Construction 5.3%
- Manufacturing 4.7%
– Service-providing:
- Trade/transportation/utilities 4.6%
- Information 4.5%
- Financial activities 5.0%
- Professional/business services 4.8%
- Education/health services 5.3%
- Leisure/hospitality 5.2%
- Other services 5.2%
Median Change in Annual Pay for Job-Stayers by Firm Size
– Small firms:
- 1-19 employees 4.1%
- 20-49 employees 4.8%
– Medium firms:
- 50-249 employees 5.1%
- 250-499 employees 4.9%
– Large firms:
- 500+ employees 4.9%
