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HomeinterviewsJanuary 2025 ADP National Employment Report: Strong Job Growth & Pay Gains

January 2025 ADP National Employment Report: Strong Job Growth & Pay Gains

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.