ROSELAND, N.J., Jan. 31, 2024: 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
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
- Mountain 2,000
- Pacific 0
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
- 500+ employees 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:
- 500+ employees 5.1%
