ADP National Employment Report: Private Sector Employment Increased by 122,000 Jobs in July; Annual Pay was Up 4.8%
The July 2024 ADP National Employment Report shows private sector employment increased by 122,000 jobs, with annual pay up 4.8% year-over-year. Key highlights include:
- Goods-producing sectors added 37,000 jobs, while service-providing sectors added 85,000 jobs
- The South region led job growth with 55,000 new positions
- Medium-sized establishments (50-499 employees) saw the largest increase, adding 70,000 jobs
- Pay gains for job-stayers slowed to 4.8%, the lowest in three years
- Job-changers experienced a significant drop in pay gains, decreasing to 7.2% from 7.7%
Nela Richardson, ADP's chief economist, noted that the labor market is aligning with the Federal Reserve's efforts to slow inflation, as evidenced by abating wage growth.
Il Rapporto Nazionale sull'Occupazione ADP di luglio 2024 mostra che l'occupazione nel settore privato è aumentata di 122.000 posti di lavoro, con un incremento salariale annuo del 4,8% rispetto all'anno precedente. I punti salienti includono:
- I settori produttivi di beni hanno aggiunto 37.000 posti di lavoro, mentre i settori dei servizi ne hanno aggiunti 85.000
- La regione sud ha guidato la crescita occupazionale con 55.000 nuove posizioni
- Le aziende di medie dimensioni (50-499 dipendenti) hanno registrato il maggiore incremento, con 70.000 nuovi posti creati
- I guadagni retributivi per chi mantiene il lavoro sono rallentati al 4,8%, il valore più basso degli ultimi tre anni
- Chi cambia lavoro ha sperimentato un significativo calo dei guadagni, scendendo al 7,2% rispetto al 7,7%
Nela Richardson, economista capo di ADP, ha osservato che il mercato del lavoro si sta allineando agli sforzi della Federal Reserve per rallentare l'inflazione, come dimostra la diminuzione della crescita salariale.
El Informe Nacional de Empleo de ADP de julio de 2024 muestra que el empleo en el sector privado aumentó en 122,000 empleos, con un aumento salarial anual del 4.8% interanual. Los aspectos destacados incluyen:
- Los sectores de producción de bienes agregaron 37,000 empleos, mientras que los sectores de servicios añadieron 85,000 empleos
- La región sur lideró el crecimiento del empleo con 55,000 nuevas posiciones
- Los establecimientos medianos (50-499 empleados) vieron el mayor aumento, añadiendo 70,000 empleos
- Las ganancias salariales para quienes se quedan en el trabajo se desaceleraron al 4.8%, el nivel más bajo en tres años
- Los que cambian de trabajo experimentaron una caída significativa en sus ganancias salariales, disminuyendo del 7.7% al 7.2%
Nela Richardson, economista jefe de ADP, señaló que el mercado laboral se está alineando con los esfuerzos de la Reserva Federal para frenar la inflación, como se evidencia por la desaceleración del crecimiento salarial.
2024년 7월 ADP 전국 고용 보고서에 따르면 민간 부문 고용이 122,000개 일자리 증가했다며, 연간 임금은 전년 대비 4.8% 상승했다. 주요 내용은 다음과 같다:
- 재화 생산 부문에서 37,000개의 일자가 추가되었고, 서비스 제공 부문에서 85,000개가 추가됨
- 남부 지역이 55,000개의 신규 직리를 추가하며 고용 성장률을 주도함
- 중규모 사업체(50-499명 직원)는 70,000개의 일자리를 추가하여 가장 큰 증가세를 기록함
- 근속 직원의 임금 증가율은 3년 만에 최저인 4.8%로 둔화됨
- 이직하는 직원은 임금 증가폭이 7.7%에서 7.2%로 크게 감소함
ADP의 수석 경제학자인 네라 리차드슨은 시장이 인플레이션을 둔화시키기 위한 연준의 노력에 맞춰지고 있음을 나타내며, 이는 임금 성장 둔화로 증명된다고 언급했다.
Le rapport national sur l'emploi d'ADP pour juillet 2024 indique que l'emploi dans le secteur privé a augmenté de 122 000 postes, avec une hausse des salaires annuels de 4,8 % par rapport à l'année précédente. Les éléments clés incluent :
- Les secteurs de production de biens ont ajouté 37 000 postes, tandis que les secteurs de services ont ajouté 85 000 postes
- La région sud a mené la croissance de l'emploi avec 55 000 nouvelles positions
- Les établissements de taille moyenne (50-499 employés) ont enregistré la plus forte augmentation avec 70 000 postes ajoutés
- Les gains salariaux pour ceux qui restent dans leur poste ont ralenti à 4,8 %, le plus bas en trois ans
- Les personnes changeant de travail ont connu une baisse significative de leurs gains, passant de 7,7 % à 7,2 %
Nela Richardson, économiste en chef d'ADP, a noté que le marché du travail s'aligne sur les efforts de la Réserve fédérale pour ralentir l'inflation, comme en témoigne l'atténuation de la croissance des salaires.
Der ADP Nationale Beschäftigungsbericht für Juli 2024 zeigt, dass die Beschäftigung im privaten Sektor um 122.000 Stellen gestiegen ist, mit einem jährlichen Lohnanstieg von 4,8 % im Vergleich zum Vorjahr. Wichtige Highlights sind:
- Die Güterproduzierenden Sektoren haben 37.000 Stellen hinzugefügt, während die Dienstleistungssektoren 85.000 Stellen hinzugefügt haben
- Die Region Süden führte das Beschäftigungswachstum mit 55.000 neuen Positionen an
- Mittelgroße Unternehmen (50-499 Mitarbeiter) verzeichneten den größten Anstieg und fügten 70.000 Stellen hinzu
- Die Lohngewinne für Beschäftigte blieben mit 4,8 % auf dem niedrigsten Stand seit drei Jahren
- Arbeitsplatzwechsler erlebten einen signifikanten Rückgang der Lohngewinne, die von 7,7 % auf 7,2 % sanken
Nela Richardson, Chefökonomin von ADP, bemerkte, dass sich der Arbeitsmarkt an die Bemühungen der Federal Reserve anpasst, die Inflation zu verlangsamen, was durch das nachlassende Lohnwachstum belegt wird.
- Private sector employment increased by 122,000 jobs in July
- Annual pay was up 4.8% year-over-year
- Construction sector added 39,000 jobs
- Trade/transportation/utilities sector added 61,000 jobs
- Large establishments (500+ employees) added 62,000 jobs
- Job creation edged down compared to previous month
- Manufacturing sector lost 4,000 jobs
- Information sector lost 18,000 jobs
- Professional/business services sector lost 37,000 jobs
- Small establishments (1-49 employees) lost 7,000 jobs
- Pay gains for job-changers slowed significantly from 7.7% to 7.2%
Insights
The July ADP National Employment Report reveals a nuanced picture of the U.S. labor market. With 122,000 private sector jobs added, we're seeing a modest slowdown in job creation compared to June's revised figure of 155,000. This deceleration aligns with the Federal Reserve's efforts to cool the economy and curb inflation.
Several key points stand out:
- The goods-producing sector added 37,000 jobs, primarily driven by construction (+39,000). This suggests ongoing strength in the housing and infrastructure sectors.
- The service-providing sector contributed 85,000 jobs, with trade/transportation/utilities leading (+61,000). However, professional/business services saw a significant decline (-37,000), indicating potential softening in white-collar industries.
- Small establishments (1-49 employees) experienced a net loss of 7,000 jobs, while medium and large establishments added 70,000 and 62,000 jobs respectively. This disparity could signal challenges for small businesses in the current economic environment.
The annual pay increase of
Overall, this report indicates a labor market that's cooling but not collapsing, which may be viewed positively by the Federal Reserve in its fight against inflation. However, the disparities across sectors and establishment sizes warrant close monitoring for potential economic imbalances.
The July ADP report offers important insights into the Federal Reserve's monetary policy effectiveness. The moderation in job growth and wage increases suggests that the Fed's aggressive interest rate hikes are having their intended effect on the labor market, without causing a dramatic slowdown.
Key observations:
- The overall job growth of 122,000 indicates a gradual cooling of the labor market, which aligns with the Fed's goal of reducing inflationary pressures without triggering a recession.
- The slowdown in annual pay growth to
4.8% for job-stayers is particularly significant. This deceleration in wage inflation could give the Fed more confidence in its current policy stance. - The sharp drop in pay gains for job-changers (from
7.7% to7.2% ) suggests diminishing labor market tightness, potentially reducing upward pressure on wages across the board.
However, the report also reveals some concerning trends:
- The loss of 37,000 jobs in professional/business services could indicate spreading weakness in high-skilled sectors, which might prompt the Fed to reassess the pace of future rate hikes.
- The divergence between small and larger establishments in job creation highlights potential vulnerabilities in the small business sector, which could have implications for overall economic resilience.
Given these mixed signals, the Fed will likely maintain its data-dependent approach, closely monitoring upcoming economic indicators to fine-tune its policy response. The August jobs report and inflation data will be important in shaping expectations for the Fed's September meeting.
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
"With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation," said Nela Richardson, chief economist, ADP. "If inflation goes back up, it won't be because of labor."
July 2024 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 122,000 jobs in July
Job creation edged down as pay gains continued to slow.
Change in
Change by Industry Sector
- Goods-producing: 37,000
- Natural resources/mining 2,000
- Construction 39,000
- Manufacturing -4,000
- Service-providing: 85,000
- Trade/transportation/utilities 61,000
- Information -18,000
- Financial activities 14,000
- Professional/business services -37,000
- Education/health services 22,000
- Leisure/hospitality 24,000
- Other services 19,000
Change by
- Northeast: 21,000
- New England -2,000
- Middle Atlantic 23,000
- Midwest: 17,000
- East North Central 21,000
- West North Central -4,000
- South: 55,000
- South Atlantic 32,000
- East South Central 2,000
- West South Central 21,000
- West: 32,000
- Mountain 16,000
- Pacific 16,000
Change by Establishment Size
- Small establishments: -7,000
- 1-19 employees 15,000
- 20-49 employees -22,000
- Medium establishments: 70,000
- 50-249 employees 55,000
- 250-499 employees 15,000
- Large establishments: 62,000
- 500+ employees 62,000
PAY INSIGHTS
Pay gains slowed in July
Year-over-year pay gains for job-stayers slowed to 4.8 percent in July, the slowest pace of growth in three years. Job-changers saw a big drop, with pay gains slowing to 7.2 percent from 7.7 percent.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers
- Job-Changers 7.
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:
- Natural resources/mining
4.0% - Construction
5.3% - Manufacturing
4.7%
- Service-providing:
- Trade/transportation/utilities
4.6% - Information
4.4% - Financial activities
5.0% - Professional/business services
4.7% - Education/health services
5.2% - Leisure/hospitality
4.9% - Other services
5.0%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees
4.1% - 20-49 employees
4.7%
- Medium firms:
- 50-249 employees
5.0% - 250-499 employees
4.9%
- Large firms:
- 500+ employees
4.8%
To see Pay Insights by
* Sum of components may not equal total, due to rounding.
The June total of jobs added was revised from 150,000 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 August 2024 ADP National Employment Report will be released at 8:15 a.m. ET on September 5, 2024.
About the ADP® National Employment Report™
The ADP National Employment Report is an independent measure of the change in
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
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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SOURCE ADP, Inc.
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