ROSELAND, NJ — /PRNewswire/ — Private sector employment increased by 296,000 jobs in April and annual pay was up 6.7 percent year-over-year, according to the April 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.
"The slowdown in pay growth gives the clearest signal of what's going on in the labor market right now," said Nela Richardson, chief economist, ADP. "Employers are hiring aggressively while holding pay gains in check as workers come off the sidelines. Our data also shows fewer people are switching jobs."
April 2023 Report Highlights*
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
Private employers added 296,000 jobs in April
Last month brought a burst of hiring even as pay gains for job changers slowed dramatically.
Change by Industry Sector
- Goods-producing: 67,000
- Natural resources/mining 52,000
- Construction 53,000
- Manufactur
- ing -38,000
- Service-providing: 229,000
- Trade/transportation/utilities 32,000
- Information 2,000
- Financial activities -28,000
- Professional/business services -16,000
- Education/health services 69,000
- Leisure/hospitality 154,000
- Other services 16,000
Change by U.S. Regions
- Northeast: 159,000
- New England 54,000
- Middle Atlantic 105,000
- Midwest: 118,000
- East North Central 69,000
- West North Central 49,000
- South: -100,000
- South Atlantic -28,000
- East South Central -44,000
- West South Central -28,000
- West: 109,000
- Mountain -7,000
- Pacific 116,000
Change by Establishment Size
- Small establishments: 121,000
- 1-19 employees 14,000
- 20-49 employees 107,000
- Medium establishments: 122,000
- 50-249 employees 95,000
- 250-499 employees 27,000
- Large establishments: 47,000
- 500+ employees 47,000
Pay Insights
Pay gains slowed rapidly in April. Pay growth continued its nearly year-long slowdown. Job changers in particular saw a dramatic decline, with pay slowing from 14.2 percent growth to 13.2 percent, the slowest pace of growth since November 2021.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers 6.7%
- Job-Changers 13.2%
Median Change in Annual Pay for Job-Stayers by Industry Sector
- Goods-producing:
- Natural resources/mining 6.8%
- Construction 6.9%
- Manufacturing 6.2%
Service-providing:
- Trade/transportation/utilities 6.6%
- Information 6.0%
- Financial activities 6.7%
- Professional/business services 6.3%
- Education/health services 7.0%
- Leisure/hospitality 8.9%
- Other services 6.5%
Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
- 1-19 employees 5.5%
- 20-49 employees 6.7%
- Medium firms:
- 50-249 employees 6.9%
- 250-499 employees 6.8%
- Large firms:
- 500+ employees 6.8%
* Sum of components may not equal total, due to rounding.
The May 2023 ADP National Employment Report will be released at 8:15 a.m. ET on June 1, 2023.
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 March total of jobs added was revised from 145,000 to 142,000. The historical data file, and weekly data for the previous month, is available at https://adpemploymentreport.com/.
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.