The January 2025 ADP National Employment Report highlights a strong start to the year, with private sector employment growing by 183,000 jobs. Annual pay also saw an increase of 4.7% year-over-year. The report provides an in-depth look at the current labor market using anonymized payroll data from over 25 million U.S. employees, delivering a near real-time snapshot of employment trends.
January 2025 Job Report Highlights:
Total Private Sector Employment Change:
- 183,000 jobs added in January 2025.
Job Growth by Industry Sector:
- Goods-Producing Sector: -6,000 jobs
- Natural resources/mining: 4,000
- Construction: 3,000
- Manufacturing: -13,000
- Service-Providing Sector: +190,000 jobs
- Trade/transportation/utilities: 56,000
- Information: 18,000
- Financial activities: 13,000
- Professional/business services: 14,000
- Education/health services: 20,000
- Leisure/hospitality: 54,000
- Other services: 15,000
Job Growth by U.S. Regions:
- Northeast: +22,000 jobs
- Midwest: +64,000 jobs
- South: +50,000 jobs
- West: +70,000 jobs
Job Growth by Establishment Size:
- Small establishments (1-49 employees): +39,000 jobs
- Medium establishments (50-499 employees): +92,000 jobs
- Large establishments (500+ employees): +69,000 jobs
Pay Insights:
Pay Growth Overview:
- Job-Stayers: +4.7% year-over-year
- Job-Changers: +6.8% year-over-year
Pay Growth by Industry Sector (Job-Stayers):
- Goods-Producing:
- Natural resources/mining: 4.3%
- Construction: 5.0%
- Manufacturing: 4.9%
- Service-Providing:
- Trade/transportation/utilities: 4.3%
- Information: 4.3%
- Financial activities: 5.0%
- Professional/business services: 4.6%
- Education/health services: 5.0%
- Leisure/hospitality: 4.8%
- Other services: 4.6%
Pay Growth by Firm Size (Job-Stayers):
- Small Firms (1-49 employees):
- 1-19 employees: 2.9%
- 20-49 employees: 4.5%
- Medium Firms (50-499 employees):
- 50-249 employees: 5.0%
- 250-499 employees: 5.1%
- Large Firms (500+ employees): 5.0%
Why It Matters:
The ADP National Employment Report is a valuable tool for understanding private-sector job growth and pay trends in the U.S. With over 25 million anonymized payroll records, it offers insights into hiring momentum, sector-specific performance, and wage growth across industries and firm sizes.
The January 2025 ADP National Employment Report reveals a solid start to the year for the U.S. labor market. The continued demand in consumer-facing industries and steady pay growth point toward a resilient labor market, despite challenges in certain sectors like manufacturing.
For businesses and job seekers alike, the report serves as a crucial resource for understanding current employment and pay trends, shaping workforce strategies for thep year ahead.