ADP report: Jobs up by 235K in December; pay experiences lowest growth since March

December saw the nation’s employment level rise, according to the monthly ADP National Employment Report released Thursday, as the private sector added 235,000 jobs — helping fuel a job resurgence in the last two months of 2022, especially in the consumer-facing service industries. The ADP report also showed annual pay was up 7.3% year-over-year.

“The labor market is strong but fragmented, with hiring varying sharply by industry and establishment size,” Nela Richardson, chief economist, ADP, said. “Business segments that hired aggressively in the first half of 2022 have slowed hiring and, in some cases, cut jobs in the last month of the year.”

In terms of company size, hiring was strong across small and medium establishments, while large establishments saw a drop in employment of 151,000 jobs.

Looking at where the jobs were added, the service-providing sector added 213,000 jobs while the goods-producing sector added 22,000 spots.

December saw the lowest pay growth since March 2022, with leisure and hospitality; trade, transportation and utilities; and information sectors experiencing the sharpest declines in pay gains.

Job changers’ pay growth also fell to the lowest level in 10 months and was recorded at 15.2%.