August saw the nation’s employment level rise as the private sector added 132,000 jobs with annual pay up 7.6%, according to a Wednesday release of the ADP National Employment Report produced by the Roseland-based ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
“Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” Nela Richardson, chief economist, ADP, stated. “We could be at an inflection point, from super-charged job gains to something more normal.”
In terms of company size, small businesses fared the worst, as they posted a gain of only 25,000 positions; medium-sized firms added 53,000 jobs, while large establishments gained 54,000.
Looking at where these positions were added, leisure/hospitality led the way, adding 96,000 jobs, and trade/transportation/utilities added 54,000 spots. Financial activities lost 20,000 positions and professional/business services lost 14,000 positions.
In the goods-producing sector, manufacturing saw no added positions, while construction added 21,000 and natural resources/mining added 2,000.
Year-over-year change in annual pay was 7.6% in August, in line with monthly readings since spring 2022. In early 2021, annual pay increases were running at about 2%. While the pace of pay increases is elevated, its growth has flattened.