ROSELAND, N.J., Feb. 5, 2025
/PRNewswire/ -- Private sector employment increased by 183,000
jobs in January and annual pay was up 4.7 percent year-over-year,
according to the January ADP® National Employment
Report™ produced by ADP Research in collaboration with the
Stanford Digital Economy Lab ("Stanford
Lab"). The ADP National Employment Report is an independent
measure and high-frequency view of the private-sector labor market
based on actual, anonymized payroll data of more than 25 million
U.S. employees.
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 U.S. employment. This
measure reflects the number of employees on ADP client payrolls
(Payroll Employment) to provide a richer understanding of the labor
market. Beginning January 2025, ADP's
Pay Insights measure captures nearly 14.8 million individual pay
change observations each month, up from nearly 10 million when it
launched.
"We had a strong start to 2025 but it masked a dichotomy in the
labor market," said Nela Richardson,
chief economist, ADP. "Consumer-facing industries drove hiring,
while job growth was weaker in business services and
production."
January 2025 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 183,000 jobs in January
Hiring
momentum in the last quarter of 2024 carried into January with some
exceptions, including manufacturing.
Change in U.S. Private Employment:
183,000
Change by Industry Sector
-Goods-producing: -6,000
- Natural resources/mining 4,000
- Construction 3,000
- Manufacturing -13,000
-Service-providing: 190,000
- Trade/transportation/utilities 56,000
- Information 18,000
- Financial activities 13,000
- Professional/business services 14,000
- Education/health services 20,000
- Leisure/hospitality 54,000
- Other services 15,000
Change by U.S. Regions
-Northeast: 22,000
- New England 5,000
- Middle Atlantic 17,000
-Midwest: 64,000
- East North Central 61,000
- West North Central 3,000
-South: 50,000
- South Atlantic 59,000
- East South Central 10,000
- West South Central -19,000
-West: 70,000
- Mountain 16,000
- Pacific 54,000
Change by Establishment Size
-Small establishments: 39,000
- 1-19 employees 23,000
- 20-49 employees 16,000
-Medium establishments: 92,000
- 50-249 employees 53,000
- 250-499 employees 39,000
-Large establishments: 69,000
Pay Insights
Pay gains were stable in
January
Year-over-year pay growth for job-stayers was 4.7 percent. Pay
growth for job-changers was 6.8 percent. Beginning this month, Pay
Insights incorporates a larger sample size.
Median Change in Annual Pay (ADP matched person
sample)
-Job-Stayers 4.7%
-Job-Changers 6.8%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
-Goods-producing:
- Natural resources/mining 4.3%
- Construction 5.0%
- Manufacturing 4.9%
-Service-providing:
- Trade/transportation/utilities 4.3%
- Information 4.3%
- Financial activities 5.0%
- Professional/business services 4.6%
- Education/health services 5.0%
- Leisure/hospitality4.8%
- Other services 4.6%
Median Change in Annual Pay for Job-Stayers by Firm
Size
-Small
firms:
- 1-19 employees 2.9%
- 20-49 employees 4.5%
-Medium
firms:
- 50-249 employees 5.0%
- 250-499 employees 5.1%
-Large
firms:
Pay gains were stable in January
Year-over-year pay
growth for job-stayers was 4.7 percent. Pay growth for job-changers
was 6.8 percent. Beginning this month, Pay Insights incorporates a
larger sample size.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 4.7%
- Job-Changers 6.8%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
- Goods-producing:
- Natural resources/mining
4.3%
- Construction 5.0%
- Manufacturing 4.9%
- Service-providing:
- Trade/transportation/utilities
4.3%
- Information 4.3%
- Financial activities
5.0%
- Professional/business services
4.6%
- Education/health services
5.0%
- Leisure/hospitality
4.8%
- Other services 4.6%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small firms:
- 1-19 employees
2.9%
- 20-49 employees 4.5%
- Medium firms:
-
50-249 employees 5.0%
- 250-499 employees
5.1%
- Large firms:
- 500+
employees 5.0%
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 December total number of jobs added was revised from 122,000
to 176,000. The historical data file and weekly data for the
previous month are available at
https://adpemploymentreport.com/.
The January 2025 report reflects
the scheduled annual revision of the ADP National Employment
Report. The data series has been reweighted to match annual
Quarterly Census of Employment and Wages (QCEW) benchmark data
through March 2024. In addition, this
revision encompasses an improved labeling model, including updated
geographical and industry classifications.
The 2025 mid-year preliminary benchmark will be moved from
August to September.
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 February 2025 ADP National
Employment Report will be released at 8:15 a.m. ET on March 5,
2025.
ADP Pay Insights Methodology Enhancements
ADP Pay
Insights uses employer payroll data to track the wages and salaries
of individual workers and computes year-over-year changes in pay.
Beginning in January 2025, the Pay
Insights base data set will include nearly 22.3 million workers, up
from about 14 million.
This expanded sample size is the result of improved industry
code matching and an enhanced imputational model.
From this larger sample, Pay Insights can make more than 14.8
million pay-change observations each month, up from nearly 10
million when it launched. Included in this sample are job-stayers
and job-changers.
The monthly sample of job-stayers – those unique worker-employer
pairings observed in both the current month and the 12 months
earlier – has grown from more than 7.7 million to more than 13.8
million.
The sample of job-changers – those individuals whose current job
is different than the one they held 12 months earlier – has grown
from approximately 310,000 to more than 1 million.
With this change, the Pay Insights time series also has expanded
to begin in December 2018, from
October 2019. Because the methodology
requires two years of observation to compute pay growth, the series
will be reported from November
2020.
About the ADP® National Employment
Report™
The ADP National Employment Report is an independent measure 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 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
The mission of ADP Research is
to make the future of work more productive through data-driven
discovery. Companies, workers, and policymakers rely on our finely
tuned data and unique perspective to make informed decisions that
impact workplaces around the world.
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, ADP Research Institute and ADP
Research are trademarks of ADP, Inc. All other marks are the
property of their respective owners.
Copyright © 2025 ADP, Inc. All rights reserved.
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