ADP National Employment Report: Private Sector Employment Increased by 192,000 Jobs in April; Annual Pay was Up 5.0%
The ADP National Employment Report showed that private sector employment increased by 192,000 jobs in April, with annual pay up by 5.0%. The report, based on actual payroll data of over 25 million U.S. employees, provides a high-frequency view of the labor market. Hiring was broad-based, except for the information sector, which showed weakness. Pay growth continues to slow, with job-stayers experiencing little change while job-changers saw a decrease in pay gains.
Private sector employment increased by 192,000 jobs in April.
Annual pay was up by 5.0% year-over-year.
Hiring was broad-based in April, except for the information sector which showed weakness.
The information sector (telecommunications, media, and information technology) posted job losses and the smallest pace of pay gains since August 2021.
Pay growth continues to slow, with job-changers experiencing a decrease in pay gains from 10.1% to 9.3% in April.
Insights
The addition of 192,000 jobs in April indicates a robust labor market and suggests a positive trajectory for consumer spending, which could bolster various sectors of the economy. This sustained job growth, paired with a 5.0 percent increase in annual pay, reflects a strong demand for labor. The information sector's slowdown is notable, potentially hinting at a sector-specific issue that could influence tech-related stocks.
From a regional perspective, the South's significant job gains hint at a potential shift or growth in certain industries within those states which could impact regional economies and the businesses operating there. For investors, this report may signal stability in the job market, but the continual pay gains despite a slower pace could suggest the need to monitor inflationary pressures and the potential impact on interest rates and consumer prices.
The job growth reported by ADP can be a precursor for future consumer confidence and spending patterns. Investors might anticipate that companies within the leisure and hospitality sector could benefit from the increase in jobs and wages, as disposable income is likely to rise. Conversely, the report's indication of a slowdown in the information sector's hiring and pay growth could lead to caution among investors in that domain, as it may impact future earnings and stock performance.
Moreover, the distinction between job-stayers and changers in terms of pay growth (5.0% vs. 9.3%) underscores a dynamic labor market where movement can still yield significant wage increases. This can influence an investor's approach to staffing and recruitment firms which may benefit from a high job change rate. Focus on these trends might offer an edge in markets where human capital is a critical asset.
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
"Hiring was broad-based in April," said Nela Richardson, chief economist, ADP. "Only the information sector – telecommunications, media, and information technology – showed weakness, posting job losses and the smallest pace of pay gains since August 2021."
April 2024 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 192,000 jobs in April
The average pace of hiring has accelerated over the last three months after slowing late last year, almost matching gains made in the first half of 2023. Pay growth continues to slow.
Change in
Change by Industry Sector
- Goods-producing: 47,000
- Natural resources/mining 3,000
- Construction 35,000
- Manufacturing 9,000
- Service-providing: 145,000
- Trade/transportation/utilities 26,000
- Information -4,000
- Financial activities 16,000
- Professional/business services 22,000
- Education/health services 26,000
- Leisure/hospitality 56,000
- Other services 3,000
Change by
- Northeast: 36,000
- New England 14,000
- Middle Atlantic 22,000
- Midwest: 33,000
- East North Central 34,000
- West North Central -1,000
- South: 124,000
- South Atlantic 51,000
- East South Central 28,000
- West South Central 45,000
- West: 11,000
- Mountain 7,000
- Pacific 4,000
Change by Establishment Size
- Small establishments: 38,000
- 1-19 employees 39,000
- 20-49 employees -1,000
- Medium establishments: 62,000
- 50-249 employees 46,000
- 250-499 employees 16,000
- Large establishments: 98,000
- 500+ employees 98,000
PAY INSIGHTS
Pay gains for job-changers slowed in April
Year-over-year pay gains for job-stayers were little changed in April at 5 percent. Pay growth for job-changers fell from 10.1 percent in March to 9.3 percent, but remains higher than it was at the beginning of the year.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers
- Job-Changers 9.
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:
- Natural resources/mining
4.7% - Construction
5.9% - Manufacturing
4.6%
- Service-providing:
- Trade/transportation/utilities
4.7% - Information
4.4% - Financial activities
5.1% - Professional/business services
4.9% - Education/health services
5.7% - Leisure/hospitality
5.8% - Other services
5.7%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees
5.0% - 20-49 employees
5.2%
- Medium firms:
- 50-249 employees
5.2% - 250-499 employees
5.0%
- Large firms:
- 500+ employees
4.9%
To see Pay Insights by
* Sum of components may not equal total, due to rounding.
The March total of jobs added was revised from 184,000 to 208,000. 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 May 2024 ADP National Employment Report will be released at 8:15 a.m. ET on June 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
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 © 2024 ADP, Inc. All rights reserved.
ADP-Media
View original content to download multimedia:https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-192-000-jobs-in-april-annual-pay-was-up-5-0-302133022.html
SOURCE ADP, Inc.
FAQ
How many jobs were added in April according to the ADP National Employment Report?
What was the change in U.S. private employment in April based on the ADP report?
What was the annual pay increase percentage in April according to the ADP National Employment Report?
Which sector showed weakness in April according to the ADP report?
How did pay growth change for job-changers in April according to the ADP report?
