ROSELAND, N.J., March 8,
2023 /PRNewswire/ -- Private sector employment
increased by 242,000 jobs in February and annual pay was up 7.2
percent year-over-year, according to the February
ADP® National Employment ReportTM
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.
"There is a tradeoff in the labor market right now," said
Nela Richardson, chief economist,
ADP. "We're seeing robust hiring, which is good for the
economy and workers, but pay growth is still quite elevated. The
modest slowdown in pay increases, on its own, is unlikely to drive
down inflation rapidly in the near-term."
February 2023 Report
Highlights*
View the ADP National Employment Report and interactive
charts at www.adpemploymentreport.com.
Jobs Report
Private employers added 242,000 jobs in February
Job
gains are solid and wage growth remains elevated. A particular area
of weakness is with small establishments, which shed jobs every
month since August 2022.
Change in U.S. Private Employment:
242,000
Change by Industry Sector
- Goods-producing: 52,000
- Natural resources/mining 25,000
- Construction -16,000
- Manufacturing 43,000
- Service-providing:
190,000
- Trade/transportation/utilities 3,000
- Information 9,000
- Financial activities 62,000
- Professional/business services -36,000
- Education/health services 35,000
- Leisure/hospitality 83,000
- Other services 34,000
Change by U.S. Regions
- Northeast: 37,000
- New England 2,000
- Middle Atlantic 35,000
- Midwest: -12,000
- East North Central -35,000
- West North Central 23,000
- South: 94,000
- South Atlantic 40,000
- East South Central 35,000
- West South Central 19,000
- West: 128,000
- Mountain 29,000
- Pacific 99,000
Change by Establishment Size
- Small establishments: -61,000
- 1-19 employees -56,000
- 20-49 employees -5,000
- Medium establishments: 148,000
- 50-249 employees 77,000
- 250-499 employees 71,000
- Large establishments: 160,000
Pay Insights
Pay growth slowed in February
Pay growth for job
stayers slowed to 7.2 percent in February, the slowest pace of
gains in 12 months. Pay growth decelerated for job changers, too,
falling to 14.3 percent from 14.9 percent.
Median Change in Annual Pay (ADP matched person
sample)
- Job-Stayers 7.2%
- Job-Changers 14.3%
Median Change in Annual Pay for Job-Stayers by Industry
Sector
- Goods-producing:
- Natural resources/mining 7.8%
- Construction 7.1%
- Manufacturing 7.1%
-
Service-providing:
- Trade/transportation/utilities 7.4%
- Information 6.5%
- Financial activities 7.3%
- Professional/business services 6.5%
- Education/health services 7.2%
- Leisure/hospitality 10.1%
- Other services 6.8%
Median Change in Annual Pay for Job-Stayers by Firm
Size
- Small firms:
- 1-19 employees 5.6%
- 20-49 employees 7.1%
- Medium
firms:
- 50-249 employees 7.5%
- 250-499 employees 7.4%
- Large
firms:
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 January total of jobs added was revised from 106,000 to
119,000. 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 March 2023 ADP National
Employment Report will be released at 8:15 a.m. ET on April 5,
2023.
About the ADP® National Employment
ReportTM
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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SOURCE ADP, Inc.