ADP National Employment Report: Private Sector Employment Increased by 235,000 Jobs in December; Annual Pay was Up 7.3%

<br /> ADP National Employment Report: Private Sector Employment Increased by 235,000 Jobs in December; Annual Pay was Up 7.3%<br />

PR Newswire



ROSELAND, N.J.


,


Jan. 5, 2023


/PRNewswire/ — Private sector employment increased by 235,000 jobs in December and annual pay was up 7.3 percent year-over-year, according to the December


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 labor market is strong but fragmented, with hiring varying sharply by industry and establishment size,” said

Nela Richardson

, chief economist, ADP. “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.”




December 2022

Report Highlights



*

View the

ADP National Employment Report

and interactive charts at

www.adpemploymentreport.com

.



Jobs Report


Private employers added 235,000 jobs in December


Job resurgence was seen in the last two months of 2022 led by consumer-facing service industries. Hiring was strong across small and medium establishments while large establishments saw a drop in employment of 151,000 jobs.



Change in U.S. Private Employment



:     235,000


Change by Industry Sector



Goods-producing:


22,000

  • Natural resources/mining     -14,000
  • Construction     41,000
  • Manufacturing     -5,000



Service-providing:


213,000

  • Trade/transportation/utilities     -24,000
  • Information     1,000
  • Financial activities     -12,000
  • Professional/business services     52,000
  • Education/health services     42,000
  • Leisure/hospitality     123,000
  • Other services     31,000


Change by U.S. Regions



Northeast:     54,000

  • New England     2,000
  • Middle Atlantic     52,000


– Midwest:     70,000

  • East North Central     61,000
  • West North Central     9,000



South:     253,000

  • South Atlantic     165,000
  • East South Central     19,000
  • West South Central     69,000



West:     -142,000

  • Mountain     -119,000
  • Pacific     -23,000


Change by Establishment Size



Small establishments:     195,000

  • 1-19 employees     65,000
  • 20-49 employees     130,000



Medium establishments:     191,000

  • 50-249 employees     159,000
  • 250-499 employees     32,000



Large establishments:     -151,000

  • 500+ employees     -151,000


Pay Insights


December saw the lowest pay growth since

March 2022



December ushered in the largest decline in pay growth for job stayers in the three-year series history. Leisure and hospitality; trade, transportation and utilities; and information sectors had the sharpest declines in pay gains. Job changers’ pay growth also fell to the lowest level in 10 months.



Median Change in Annual Pay (

ADP matched person sample

)



Job-Stayers


7.3%



Job-Changers


15.2%


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



Goods-producing:

  • Natural resources/mining     7.8%
  • Construction     6.9%
  • Manufacturing     7.3%



Service-providing:

  • Trade/transportation/utilities     7.5%
  • Information     7.0%
  • Financial activities     7.5%
  • Professional/business services     6.6%
  • Education/health services     7.0%
  • Leisure/hospitality     10.1%
  • Other services     6.7%


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



Small firms:

  • 1-19 employees     5.4%
  • 20-49 employees     6.9%



Medium firms:

  • 50-249 employees     7.6%
  • 250-499 employees     7.6%



Large firms:

  • 500+ employees     7.7%


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 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

January 2023


ADP National Employment Report

will be released at

8:15 a.m. ET

on

February 1, 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.


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