ROSELAND, N.J. — The ADP National Employment Report showed a modest increase in hiring in August, with U.S. private employers adding 54,000 jobs as wage growth held steady. The data, compiled by ADP Research in partnership with the Stanford Digital Economy Lab, highlights a labor market that is slowing from earlier gains but still showing resilience in key industries.
Hiring Trends Across Industries and Regions
The August figures revealed uneven hiring patterns. The leisure and hospitality sector led with 50,000 new positions, while construction added 16,000 jobs. Manufacturing contracted, losing 7,000 positions, and trade, transportation, and utilities shed 17,000. Professional and business services posted a solid gain of 15,000.
Regionally, hiring was strongest in the Northeast and Midwest, with each adding about 15,000 and 14,000 jobs, respectively. The South gained just 4,000 jobs, while the West posted 8,000. Large firms (500+ employees) created 18,000 jobs, while medium-sized businesses added 25,000. Smaller establishments contributed 12,000 jobs.
Wage Growth Holds Steady
Annual pay gains remained broadly stable in August. Job-stayers saw pay rise 4.4% year-over-year, while job-changers recorded 7.1% growth. Among industries, financial activities posted the largest pay increase at 5.1%. Manufacturing workers saw 4.7% gains, while leisure and hospitality recorded 4.5%.
Pay growth varied by firm size:
- Employees at small firms (1–19 workers) received the lowest increases, just 2.5%.
- Workers at medium-sized companies (50–499) saw 4.7% gains.
- Large companies (500+) delivered pay increases of 4.8%.
Broader Context
Chief Economist Nela Richardson of ADP said the slowdown reflects uncertainty in the U.S. economy. “The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” she noted, pointing to labor shortages, consumer caution, and AI-driven disruptions as possible contributors to weaker hiring.
The July employment number was revised upward to 106,000 from 104,000, but August’s print underscores a deceleration. Despite the softer data, sectors tied to consumer spending and infrastructure investment remain relatively robust.
Looking Ahead
The ADP report, which is based on anonymized payroll data from more than 26 million U.S. workers, is closely watched for early signals of labor market trends ahead of the official government jobs report. The next release is scheduled for October 1, 2025, covering September employment trends.
