In September 2024, private sector employment saw an increase of 143,000 jobs, while annual pay rose 4.7% year-over-year, according to the ADP National Employment ReportTM. The report, produced by ADP Research in collaboration with Stanford Digital Economy Lab, offers a detailed view of the U.S. private labor market, using anonymized payroll data from over 25 million employees. Despite the rebound in hiring, pay gains slowed compared to previous months, particularly for job-changers, whose pay growth premium over job-stayers shrank to 1.9%.
1. Jobs Report Highlights for September 2024:
- Private employers added 143,000 jobs in September, reversing a five-month slowdown.
- The Goods-Producing sector saw an increase of 42,000 jobs, led by Construction (26,000) and Natural Resources/Mining (14,000).
- The Service-Providing sector added 101,000 jobs, with Leisure/Hospitality seeing the most gains (34,000), followed by Education/Health Services (24,000) and Professional/Business Services (20,000).
- Only the Information sector experienced a job loss, shedding 10,000 jobs.
2. Job Growth by Region and Establishment Size:
- Northeast: Added 32,000 jobs, with the Middle Atlantic region contributing 25,000.
- Midwest: Saw a gain of 26,000 jobs, led by East North Central with 18,000.
- South: Had the highest increase, with 61,000 jobs, particularly in West South Central (43,000).
- West: Added 22,000 jobs, led by the Pacific region with 21,000.
- Establishment Size:
- Small establishments (1-19 employees): Decreased by 8,000 jobs.
- Medium establishments (50-249 employees): Added 64,000 jobs.
- Large establishments (500+ employees): Added 86,000 jobs.
3. Pay Insights – Slower Pay Growth in September 2024:
- Job-Stayers: Pay increased by 4.7%, with higher pay gains in Construction (5.1%) and Education/Health Services (5.1%).
- Job-Changers: Experienced a sharper drop in pay growth, down to 6.6% from 7.3% in August.
- Pay gains by company size showed that medium firms (50-249 employees) had the highest increases at 5.0%, while smaller firms (1-19 employees) saw the lowest, with a 4.0% increase.
The September 2024 ADP National Employment Report shows positive job growth across multiple sectors, with a notable rebound in hiring after months of slowdown. However, pay growth has decelerated, especially for job-changers, highlighting a shift in compensation trends. As companies continue to adapt to the evolving labor market, maintaining competitive wages and job creation will remain essential in sustaining workforce stability and growth.
