ROSELAND, N.J. — The ADP National Employment Report released Thursday revealed that U.S. private-sector employers added 54,000 jobs in August, while annual pay rose 4.4% year-over-year. The data, compiled by ADP Research in partnership with the Stanford Digital Economy Lab, underscores the slowing pace of hiring as companies weigh consumer uncertainty, tight labor markets, and the impact of artificial intelligence disruptions.
ADP’s analysis draws on anonymized payroll data from over 26 million private-sector workers and monthly pay-change observations for 14.8 million employees, providing one of the most granular snapshots of U.S. labor trends available.
Chief economist Nela Richardson noted that after a strong start to 2025, job growth has “been whipsawed by uncertainty,” pointing to factors ranging from labor shortages to shifting consumer confidence.
Sector and Regional Breakdown
The August report showed sharp differences across industries. Leisure and hospitality led with 50,000 new jobs, followed by construction with 16,000, while manufacturing lost 7,000 and education and health services fell by 12,000. Trade, transportation, and utilities also posted a decline of 17,000 jobs.
Regional trends were mixed. The Northeast gained 15,000 jobs, led by growth in New England and the Mid-Atlantic. The Midwest added 14,000, while the South posted only 4,000 due to weakness in the West South Central region. The West gained 8,000, with California and the Pacific region driving growth.
By company size, small businesses added 12,000 jobs, medium-sized firms 25,000, and large enterprises 18,000, suggesting mid-sized employers remain the most resilient segment of the labor market.
Pay Growth Remains Stable
Wage growth continued at a moderate pace. Job-stayers saw median pay rise 4.4%, while job-changers recorded a stronger 7.1% increase. Pay gains were highest in financial activities (5.1%), manufacturing (4.7%), and large firms (4.8%).
Despite slowing job creation, compensation trends show companies remain willing to raise wages to retain workers, particularly in sectors where demand outpaces supply.
Revisions and Outlook
July’s job gains were revised upward from 104,000 to 106,000, though the August slowdown highlights the challenges facing employers. The next ADP National Employment Report will be published October 1, 2025, offering another data point ahead of the Federal Reserve’s fall policy meetings.
With modest job creation and steady wage pressures, the August data suggests a labor market that remains tight but uneven — factors likely to shape monetary policy, corporate hiring strategies, and wage negotiations through the end of the year.
