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ADP National Employment Report: Private Sector Employment Increased by 54,000 Jobs in August; Annual Pay was Up 4.4%

1. Private sector added 54,000 jobs in August, below expectations. 2. Yearly pay growth stands at 4.4% for existing employees. 3. Leisure and hospitality sectors showed strong hiring despite broader slowdown. 4. Hiring slowdown attributed to labor shortages and consumer uncertainties. 5. Upcoming ADP reports will reflect ongoing employment trends.

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FAQ

Why Neutral?

The job growth number is modest and reflects ongoing economic uncertainty, indicating a stagnant market segment. Historically, lower job additions have not significantly affected ADP's stock; e.g., during economic slowdowns in the early 2000s.

How important is it?

The insights into employment trends and pay growth are directly linked to ADP's core business. As a provider of payroll and HR solutions, these economic indicators help predict client needs and service requirements.

Why Short Term?

The immediate effects of employment figures typically influence market sentiment briefly. Longer-term impacts may emerge based on trends seen in subsequent months.

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, /PRNewswire/ -- Private sector employment increased by 54,000 jobs in August and pay was up 4.4 percent year-over-year according to the August ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").   ADP Research (PRNewsfoto/ADP, Inc.) The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures nearly 14.8 million individual pay change observations each month.  Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and high-frequency picture of the private-sector labor market. "The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said Dr. Nela Richardson, chief economist, ADP. "A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions." August 2025 Report HighlightsView the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.JOBS REPORTPrivate employers added 54,000 jobs in AugustLeisure and hospitality and construction performed well despite a broader month-over-month slowdown in hiring.Change in U.S. Private Employment:     54,000Change by Industry- Goods-producing:     13,000 Natural resources/mining     4,000 Construction     16,000 Manufacturing     -7,000 - Service-providing:     42,000 Trade/transportation/utilities     -17,000 Information     7,000 Financial activities     -2,000 Professional/business services     15,000 Education/health services     -12,000 Leisure/hospitality     50,000 Other services     1,000 Change by U.S. Regions - Northeast:     15,000 New England     7,000 Mid-Atlantic     8,000 - Midwest:     14,000 East North Central     17,000 West North Central     -3,000 - South:     4,000 South Atlantic     4,000 East South Central     15,000 West South Central     -15,000 - West:     8,000 Mountain     -4,000 Pacific     12,000 Change by Establishment Size - Small establishments:     12,000 1-19 employees     10,000 20-49 employees     2,000 - Medium establishments:     25,000 50-249 employees     18,000 250-499 employees     7,000 - Large establishments:     18,000 500+ employees     18,000 PAY INSIGHTSPay gains were little changed in AugustYear-over-year pay growth was 4.4 percent for job-stayers and 7.1 percent for job-changers.Median Change in Annual Pay - Job-stayers     4.4%- Job-changers     7.1%Median Change in Annual Pay for Job-Stayers by Industry - Goods-producing:                                                     Natural resources/mining     4.3% Construction     4.4% Manufacturing     4.7% - Service-providing:                                                Trade/transportation/utilities     4.2% Information     4.2% Financial activities     5.1% Professional/business services     4.2% Education/health services     4.4% Leisure/hospitality     4.5% Other services     4.1% Median Change in Annual Pay for Job-Stayers by Firm Size- Small firms:                                                                 1-19 employees     2.5% 20-49 employees     4.0% - Medium firms:                                                              50-249 employees     4.7% 250-499 employees     4.7% - Large firms:                                                                 500+ employees     4.8% To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here: The July total number of jobs added was revised from 104,000 to 106,000.For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.    The September 2025 ADP National Employment Report will be released on October 1, 2025 at 8:15 a.m. ET.About ADP ResearchThe mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.    About ADP (NASDAQ: ADP)ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.comADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2025 ADP, Inc. All rights reserved.ADP-MediaSOURCE ADP, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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