Private Sector Employment Increases by 497,000 Jobs; Annual Pay up 6.4% Article originally posted on AZ Big Media on July 7, 2023 Private sector employment increased by 497,000 jobs in June and annual pay was up 6.4 percent year-over-year, according to the June ADP® National Employment ReportTM produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy 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. “Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” said Nela Richardson, chief economist, ADP. “But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge.” June 2023 Private sector employment report highlights View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com. Jobs Report Private sector employment added 497,000 jobs in June: Job creation surged in June, led by consumer-facing services. Leisure and hospitality, trade and transportation, and education and health services showed strong gains. Still, the market was fragmented, with manufacturing, information, and finance showing declines. Change in U.S. Private Employment: 497,000 Change by Industry Sector – Goods-producing: 124,000 Natural resources/mining 69,000 Construction 97,000 Manufacturing -42,000 – Service-providing: 373,000 Trade/transportation/utilities 90,000 Information -30,000 Financial activities -16,000 Professional/business services -5,000 Education/health services 74,000 Leisure/hospitality 232,000 Other services 28,000 Change by U.S. Regions – Northeast: 250,000 New England 77,000 Middle Atlantic 173,000 – Midwest: 162,000 East North Central 83,000 West North Central 79,000 – South: -10,000 South Atlantic 10,000 East South Central -12,000 West South Central -8,000 – West: 83,000 Mountain 3,000 Pacific 80,000 Change by Establishment Size – Small establishments: 299,000 1-19 employees 162,000 20-49 employees 137,000 – Medium establishments: 183,000 50-249 employees 171,000 250-499 employees 12,000 – Large establishments: -8,000 500+ employees -8,000 Pay Insights Pay gains slowed again in June Job stayers saw a year-over-year pay increase of 6.4 percent, down from 6.6 percent in May. For job changers, pay gains slowed for the 12th straight month, to 11.2 percent, the slowest pace of growth since October 2021. Median Change in Annual Pay (ADP matched person sample) – Job-Stayers 6.4% – Job-Changers 11.2% Median Change in Annual Pay for Job-Stayers by Industry Sector – Goods-producing: Natural resources/mining 6.4% Construction 6.7% Manufacturing 5.9% – Service-providing: Trade/transportation/utilities 6.3% Information 5.9% Financial activities 6.7% Professional/business services 6.2% Education/health services 6.9% Leisure/hospitality 7.9% Other services 6.3% Median Change in Annual Pay for Job-Stayers by Firm Size – Small firms: 1-19 employees 5.4% 20-49 employees 6.5% – Medium firms: 50-249 employees 6.7% 250-499 employees 6.6% – Large firms: 500+ employees 6.5% 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 May total of jobs added was revised from 278,000 to 267,000. 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 July 2023 ADP National Employment Report will be released at 8:15 a.m. ET on August 2, 2023.