ROSELAND, N.J. — The ADP National Employment Report for August showed that private-sector employers added 54,000 jobs, while annual pay growth climbed 4.4% year-over-year, highlighting a softer pace of hiring amid persistent economic uncertainty.
The report, compiled by ADP Research in collaboration with the Stanford Digital Economy Lab, tracks anonymized payroll data from more than 26 million U.S. employees, offering one of the most detailed snapshots of the labor market. According to ADP Chief Economist Nela Richardson, the year began with robust hiring, but that momentum has been uneven in recent months.
“A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions,” Richardson said.
Job Gains Concentrated in Leisure and Construction
The August numbers reflect uneven hiring across industries. Leisure and hospitality led with 50,000 jobs, while construction added 16,000, reflecting resilience in consumer services and infrastructure spending. However, manufacturing lost 7,000 positions and education and health services shed 12,000, signaling ongoing sector-specific challenges.
By region, job growth was strongest in the Northeast (15,000) and Midwest (14,000), while the South added just 4,000 positions, and the West gained 8,000.
Pay Insights: Job-Changers See Bigger Gains
Wage growth remained steady. Job-stayers recorded a 4.4% median annual pay increase, while job-changers saw their pay jump 7.1%, underscoring the continued premium for workers who switch employers.
Pay gains varied by industry, with financial activities leading at 5.1%, followed by manufacturing at 4.7%. Smaller firms, particularly those with fewer than 20 employees, reported the weakest wage growth at 2.5%.
Market Context
The ADP findings come as employers balance labor shortages, rising borrowing costs, and rapid technological change. While the labor market remains historically tight, the slowdown in job creation suggests employers are cautious in committing to long-term hiring amid shifting demand and policy uncertainty.
The July job additions were revised slightly upward, from 104,000 to 106,000, signaling a gradual cooling rather than a sharp downturn.
The next ADP National Employment Report will be released on October 1, 2025.
