ADP National Employment Report: Private Sector Employment Increased by 145,000 Jobs in March; Annual Pay was Up 6.9%

Rhea-AI Summary

ADP National Employment Report indicates that private sector employment rose by 145,000 jobs in March, while annual pay saw a 6.9% year-over-year increase. The report, utilizing anonymized payroll data from over 25 million U.S. employees, shows signs of a slowing economy as employers reduce hiring following strong growth in previous months. Notably, pay growth for job stayers decreased from 7.2% to 6.9%, and job changers experienced a drop from 14.4% to 14.2%. The February jobs data was revised upward from 242,000 to 261,000.

Positive

• Private sector added 145,000 jobs in March.
• Annual pay growth remained strong at 6.9%.

Negative

• Signs of an economic slowdown noted by ADP's chief economist.
• Pay growth decelerated from previous months for both job stayers and job changers.

ROSELAND, N.J., April 5, 2023 /PRNewswire/ -- Private sector employment increased by 145,000 jobs in March and annual pay was up 6.9 percent year-over-year, according to the March ADP^® National Employment Report™ produced by the ADP Research Institute^® in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data of over 25 million U.S. employees to provide a representative picture of the labor market. The report details the current month's total private employment change, and weekly job data from the previous month. ADP's pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

"Our March payroll data is one of several signals that the economy is slowing," said Nela Richardson, chief economist, ADP. "Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down."

March 2023 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

Jobs Report

Private employers added 145,000 jobs in March

The job market is beginning to find its balance as consumer demand ebbs and the cost of borrowing goes up.

Change in U.S. Private Employment:     145,000

Change by Industry Sector

- Goods-producing:     70,000

• Natural resources/mining     47,000
• Construction     53,000
• Manufacturing     -30,000

- Service-providing:     75,000

• Trade/transportation/utilities     56,000
• Information     -7,000
• Financial activities     -51,000
• Professional/business services     -46,000
• Education/health services     17,000
• Leisure/hospitality     98,000
• Other services     8,000

Change by U.S. Regions

- Northeast:     141,000

• New England     41,000
• Middle Atlantic     100,000

- Midwest:     132,000

• East North Central     84,000
• West North Central     48,000

- South:     -228,000

• South Atlantic     -60,000
• East South Central     -87,000
• West South Central     -81,000

- West:     95,000

• Mountain     -5,000
• Pacific     100,000

Change by Establishment Size

- Small establishments:     101,000

• 1-19 employees     38,000
• 20-49 employees     63,000

- Medium establishments:     33,000

• 50-249 employees     75,000
• 250-499 employees     -42,000

- Large establishments:     10,000

• 500+ employees     10,000

Pay Insights

Pay gains fell faster in March 
Pay growth decelerated for both job stayers and job changers. For job stayers, year-over-year gains fell to 6.9 percent from 7.2 percent in February. Pay growth for job changers was 14.2 percent, down from 14.4 percent.

Median Change in Annual Pay (ADP matched person sample)

- Job-Stayers     6.9%

- Job-Changers     14.2%

Median Change in Annual Pay for Job-Stayers by Industry Sector

- Goods-producing:                                                       

• Natural resources/mining     7.3%
• Construction     7.0%
• Manufacturing     6.5%

- Service-providing:                                               

• Trade/transportation/utilities     7.0%
• Information     6.3%
• Financial activities     6.8%
• Professional/business services     6.4%
• Education/health services     7.2%
• Leisure/hospitality     9.6%
• Other services     6.6%

Median Change in Annual Pay for Job-Stayers by Firm Size

- Small firms:                                                                

• 1-19 employees     5.5%
• 20-49 employees     6.9%

- Medium firms:                                                             

• 50-249 employees     7.2%
• 250-499 employees     7.1%

- Large firms:                                                                

• 500+ employees     7.0%

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 February total of jobs added was revised from 242,000 to 261,000. 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 April 2023 ADP National Employment Report will be released at 8:15 a.m. ET on May 3, 2023.

About the ADP® National Employment Report™ 
The ADP National Employment Report is an independent estimate 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

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 © 2023 ADP, Inc. All rights reserved.

ADP-Media

 

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SOURCE ADP, Inc.

FAQ

What are the key findings of the March 2023 ADP National Employment Report?

The report highlights an increase of 145,000 private sector jobs and a year-over-year pay growth of 6.9%.

How did pay growth change in March 2023 according to ADP?

Pay growth for job stayers decreased from 7.2% to 6.9%, while job changers saw a decline from 14.4% to 14.2%.

What is the significance of the job increase reported by ADP for March 2023?

The increase indicates continued job creation, although it suggests a potential slowdown in hiring momentum in the economy.

How does the March 2023 employment data compare to February 2023?

February's job additions were revised upward from 242,000 to 261,000, highlighting a stronger employment trend than initially reported.

What industries contributed to the job growth in March 2023?

The goods-producing sector added 70,000 jobs, while the service-providing sector contributed 75,000 jobs.