ADP National Employment Report: Private Sector Employment Increased by 103,000 Jobs in November; Annual Pay was Up 5.6%

ROSELAND, N.J. ,  Dec. 6, 2023  Private sector employment increased by 103,000 jobs in November and annual pay was up 5.6 percent year-over-year, according to the November  ADP ®  National Employment Report™  produced by the ADP Research Institute ®  in collaboration with the Stanford Digital Economy Lab (" Stanford Lab "). The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP's pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

"Restaurants and hotels were the biggest job creators during the post-pandemic recovery," said  Nela Richardson , chief economist, ADP. "But that boost is behind us, and the return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024."

November 2023  Report Highlights * View the  ADP National Employment Report  and interactive charts at  www.adpemploymentreport.com .

JOBS REPORT

Private employers added 103,000 jobs in November Last month brought moderate growth in hiring and another slowdown in pay gains. Both goods and services saw weakness, with leisure and hospitality and manufacturing posting declines.

Change in U.S. Private Employment :     103,000

Change by Industry Sector

-  Goods-producing:       -14,000 Natural resources/mining     5,000 Construction     -4,000 Manufacturing     -15,000 -  Service-providing:      117,000 Trade/transportation/utilities     55,000 Information     4,000 Financial activities     11,000 Professional/business services     -5,000 Education/health services     44,000 Leisure/hospitality     -7,000 Other services     15,000

Change by U.S. Regions

- Northeast:     59,000 New England     7,000 Middle Atlantic     52,000 -  Midwest:     2,000 East North Central     9,000 West North Central     -7,000 -  South:     58,000 South Atlantic     24,000 East South Central     -10,000 West South Central     44,000 -  West:     -10,000 Mountain     -6,000 Pacific     -4,000

Change by Establishment Size

-  Small establishments:     6,000 1-19 employees     22,000 20-49 employees     -16,000 - Medium establishments:     68,000 50-249 employees     71,000 250-499 employees     -3,000 - Large establishments:     33,000 500+ employees     33,000

PAY INSIGHTS

Pay growth continued its slowdown in November Job-stayers saw a 5.6 percent pay increase in November, the slowest pace of gains since  September 2021 . Job-changers, too, saw slowing pay growth, posting pay gains of 8.3 percent, the smallest year-over-year increase since  June 2021 . The premium for switching jobs is at its smallest in three years of data.

Median Change in Annual Pay ( ADP matched person sample )

-  Job-Stayers      5.6% -  Job-Changers     8 .3% Median Change in Annual Pay for Job-Stayers by Industry Sector -  Goods-producing:

Natural resources/mining     5.2% Construction     5.8% Manufacturing     5.1% -  Service-providing:

Trade/transportation/utilities     5.4% Information     5.2% Financial activities     6.0% Professional/business services     5.5% Education/health services     6.2% Leisure/hospitality     6.5% Other services     5.7% Median Change in Annual Pay for Job-Stayers by Firm Size -  Small firms:

1-19 employees     4.8% 20-49 employees     5.7% - Medium firms:

50-249 employees     5.8% 250-499 employees     5.7% -  Large firms:

500+ employees     5.6% To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit  here :

* Sum of components may not equal total, due to rounding.

The October total of jobs added was revised from 113,000 to 106,000. The historical data file, and weekly data for the previous month, is available at  https://adpemploymentreport.com/ .

To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit  https://adpemploymentreport.com/ .

The  December 2023   ADP National Employment Report  will be released at  8:15 a.m. ET  on  January 4, 2024 .

About the  ADP® National Employment Report™

The ADP National Employment Report is an independent measure of the change in U.S. private employment and pay derived from actual, anonymized payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.

About the ADP Research Institute®

The ADP Research Institute delivers data-driven discoveries about the world of work and derives reliable economic indicators from these insights. We offer these findings as a unique contribution to making the world of work better and more productive by delivering actionable insights to the economy at large.

About ADP (NASDAQ – ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at  ADP.com

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For further information: Joanna DiNizio, ADP, Inc., (973) 369-8167, joanna.dinizio@adp.com