The May 2025 ADP® National Employment Report™, created in collaboration with the Stanford Digital Economy Lab, shows a modest increase in private sector jobs and stable pay growth. Based on anonymized payroll data from over 25 million U.S. workers, this high-frequency labor market report offers key insights into employment trends and wage dynamics.
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Total Jobs Added (May 2025): 37,000
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Annual Pay Growth (Job-Stayers): 4.5%
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Annual Pay Growth (Job-Changers): 7.0%
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Hiring Momentum: Lowest since March 2023
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ADP Pay Insights Coverage: ~14.8 million observations per month
Jobs Report Breakdown
1. Change by Industry Sector
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Goods-Producing Sector: -2,000 jobs
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Natural Resources/Mining: -5,000
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Construction: +6,000
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Manufacturing: -3,000
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Service-Providing Sector: +36,000 jobs
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Trade/Transportation/Utilities: -4,000
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Information: +8,000
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Financial Activities: +20,000
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Professional/Business Services: -17,000
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Education/Health Services: -13,000
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Leisure/Hospitality: +38,000
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Other Services: +4,000
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2. Change by Region
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Northeast: -19,000
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New England: -16,000
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Middle Atlantic: -3,000
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Midwest: +20,000
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East North Central: +23,000
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West North Central: -3,000
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South: -5,000
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South Atlantic: +20,000
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East South Central: +19,000
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West South Central: -44,000
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West: +37,000
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Mountain: +35,000
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Pacific: +2,000
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3. Change by Business Size
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Small Establishments (1–49 employees): -13,000
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1–19 employees: -6,000
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20–49 employees: -7,000
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Medium Establishments (50–499 employees): +49,000
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50–249 employees: +51,000
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250–499 employees: -2,000
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Large Establishments (500+ employees): -3,000
Pay Insights Overview
1. Pay Trends by Worker Status
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Job-Stayers: +4.5% YoY
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Job-Changers: +7.0% YoY
2. Pay Growth by Industry (Job-Stayers)
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Natural Resources/Mining: 4.5%
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Construction: 4.6%
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Manufacturing: 4.6%
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Trade/Transportation/Utilities: 4.2%
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Information: 4.2%
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Financial Activities: 5.2%
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Professional/Business Services: 4.2%
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Education/Health Services: 4.6%
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Leisure/Hospitality: 4.8%
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Other Services: 4.3%
3. Pay Growth by Firm Size (Job-Stayers)
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Small Firms:
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1–19 employees: 2.6%
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20–49 employees: 4.1%
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Medium Firms:
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50–249 employees: 4.8%
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250–499 employees: 4.9%
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Large Firms (500+): 4.8%
While hiring in the private sector decelerated in May 2025, the labor market remains resilient with strong and steady pay growth. Despite regional and sectoral disparities, wage increases suggest healthy compensation dynamics, particularly among medium-sized firms and job-changers. Employers and HR leaders should continue to monitor these trends closely as labor market conditions evolve.
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