The USD ADP Non-Farm Employment Change for January 2024 indicated an increase in private sector employment by 107,000 jobs. This figure falls short of the median forecast of 150,000 jobs. Additionally, annual pay saw a rise of 5.2% compared to the previous year. The report, a collaboration between the ADP Research Institute and the Stanford Digital Economy Lab, offers an independent measure of U.S. private employment and pay changes based on anonymized payroll data from over 25 million U.S. employees.
Industry-wise, the service-providing sector contributed significantly to the job growth with 77,000 new jobs, while the goods-producing sector added 30,000 jobs. In particular, the leisure and hospitality sector saw a notable increase of 28,000 jobs. The education and health services sector also experienced a significant rise, adding 17,000 jobs.
Regionally, the South led the growth with 57,000 new jobs, followed by the Northeast with 32,000, the Midwest with 24,000, and the West with a minimal increase of 2,000 jobs.
In terms of establishment size, medium-sized establishments (50-249 employees) contributed the most with 61,000 new jobs, followed by large establishments (500+ employees) with 31,000 jobs, and small establishments (1-49 employees) adding 25,000 jobs.
The report also highlighted that the median change in annual pay for job-stayers was 5.2%, whereas for job-changers, it was 7.2%. This data suggests a continued trend of shrinking pay gains, with January marking the smallest annual gain for job-changers since May 2021.
The data from the ADP report is significant as it provides insights into the private sector’s employment trends, which are key indicators of the overall health of the U.S. economy. The report’s findings are used by businesses and governments to inform policy and strategy decisions.
The next ADP National Employment Report is scheduled for release on March 6, 2024.
For more detailed information, you can refer to the sources at ADP’s Media Center and Yahoo Finance.
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