According to the July ADP National Employment Report, private sector employment increased by 122,000 jobs in July. This report, created by the ADP Research Institute in partnership with the Stanford Digital Economy Lab, also highlights a 4.8% year-over-year increase in annual pay.
Key Insights from the Report
- Employment Increase: 122,000 new jobs added in July.
- Annual Pay Growth: Up by 4.8% year-over-year.
- Data Source: Based on anonymized payroll data from over 25 million U.S. employees.
ADP National Employment Report Overview
- Methodology: Uses anonymized and aggregated payroll data to provide a detailed view of the private-sector labor market.
- Data Frequency: Offers high-frequency, near real-time insights into U.S. employment based on continuously updated payroll databases.
- Coverage: Represents a rich understanding of the labor market with data on payroll employment and earnings of around 10 million employees over a 12-month period.
Economic Implications
- Wage Growth and Inflation: Commenting on the report, Nela Richardson, Chief Economist at ADP, notes that wage growth is slowing, aligning with the Federal Reserve’s efforts to curb inflation.
- Future Outlook: Richardson suggests that any future rise in inflation is unlikely to be driven by labor costs.
The July ADP National Employment Report provides a positive snapshot of the labor market with significant job growth and stable wage increases. The data reflects ongoing efforts to manage inflation while maintaining a robust employment landscape.
