ROSELAND, N.J., Nov. 1, 2023 /PRNewswire/ — Private sector employment increased by 113,000 jobs in October and annual pay was up 5.7 percent year-over-year, according to the October 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.
ADP Research Institute, logo (PRNewsfoto/ADP, Inc.)
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.
“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said Nela Richardson, chief economist, ADP. “In all, October’s numbers paint a well-rounded jobs picture. And while the labor market has slowed, it’s still enough to support strong consumer spending.”
October 2023 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 113,000 jobs in OctoberLeisure and hospitality hiring led the post-pandemic job recovery. But the industry ceded its place as the top job creator last month to education and health care.
Change in U.S. Private Employment: 113,000
Change by Industry Sector
– Goods-producing: 6,000
Natural resources/mining -1,000
Construction 4,000
Manufacturing 3,000
– Service-providing: 107,000
Trade/transportation/utilities 35,000
Information 0
Financial activities 21,000
Professional/business services -10,000
Education/health services 45,000
Leisure/hospitality 17,000
Other services -1,000
Change by U.S. Regions
– Northeast: 21,000
New England 4,000
Middle Atlantic 17,000
– Midwest: -13,000
East North Central -17,000
West North Central 4,000
– South: 64,000
South Atlantic 34,000
East South Central 5,000
West South Central 25,000
– West: 46,000
Mountain 6,000
Pacific 40,000
Change by Establishment Size
– Small establishments: 19,000
1-19 employees 21,000
20-49 employees -2,000
– Medium establishments: 78,000
50-249 employees 96,000
250-499 employees -18,000
– Large establishments: 18,000
500+ employees 18,000
PAY INSIGHTS
Pay growth slowed to two-year low in OctoberJob-stayers reported a 5.7 percent year-over-year pay increase in October, the slowest pace of growth since October 2021. Pay growth for job-changers was 8.4 percent, the smallest increase since July 2021.
Median Change in Annual Pay (ADP matched person sample)
– Job-Stayers 5.7%
– Job-Changers 8.4%
Median Change in Annual Pay for Job-Stayers by Industry Sector
– Goods-producing:
Natural resources/mining 5.3%
Construction 5.8%
Manufacturing 5.2%
– Service-providing:
Trade/transportation/utilities 5.5%
Information 5.1%
Financial activities 6.1%
Professional/business services 5.6%
Education/health services 6.3%
Leisure/hospitality 6.6%
Other services 5.9%
Median Change in Annual Pay for Job-Stayers by Firm Size
– Small firms:
1-19 employees 4.9%
20-49 employees 5.8%
– Medium firms:
50-249 employees 5.9%
250-499 employees 5.8%
– Large firms:
500+ employees 5.8%
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 September total of jobs added remained unchanged with no revision at 89,000. 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 November 2023 ADP National Employment Report will be released at 8:15 a.m. ET on December 6, 2023.
About the ADP® National Employment ReportTMThe 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
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