ROSELAND, N.J. — U.S. private sector job growth slowed in August, with employers adding 54,000 positions, while annual pay gains held steady at 4.4%, according to the latest ADP National Employment Report. The data, compiled with Stanford’s Digital Economy Lab, underscores a labor market adjusting to economic uncertainty and rapid technological change.
Hiring Trends by Sector and Region
The report revealed uneven hiring across industries. Leisure and hospitality led gains with 50,000 new positions, while construction added 16,000 jobs. By contrast, manufacturing lost 7,000 roles and trade, transportation, and utilities shed 17,000.
Regionally, the Northeast and Midwest saw the strongest increases, adding 15,000 and 14,000 jobs respectively. The South posted just 4,000 jobs, dragged down by a sharp 15,000 decline in the West South Central area. The West gained 8,000 overall, buoyed by 12,000 hires in the Pacific states.
Hiring strength was most evident among medium-sized firms, which added 25,000 jobs. Large employers contributed 18,000 positions, while small businesses accounted for 12,000.
Pay Insights Remain Stable
Pay growth showed little change from July. Job-stayers recorded a 4.4% median annual pay increase, while job-changers saw 7.1% gains, signaling ongoing wage competition despite moderating hiring.
Pay trends varied by industry. Workers in financial activities led with a 5.1% median pay increase, while those in manufacturing saw 4.7%. Leisure and hospitality, a key driver of August’s hiring, posted 4.5%.
Company size also influenced wage dynamics: employees at large firms received 4.8% increases on average, compared with just 2.5% for workers at the smallest companies.
Economic Context
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Dr. Nela Richardson, chief economist at ADP. She cited labor shortages, cautious consumer sentiment, and disruptions from AI adoption as potential reasons for the hiring slowdown.
The report also revised July’s job gains upward to 106,000 from the previously reported 104,000, reflecting modestly stronger momentum heading into August.
Looking Ahead
The ADP National Employment Report, which analyzes anonymized payroll data from over 26 million workers, is closely watched as a real-time indicator of private sector conditions. The September report is scheduled for release on October 1, 2025.
With wage growth holding steady but hiring momentum easing, the data adds to a mixed picture of the U.S. economy as businesses weigh expansion plans against persistent uncertainty in consumer demand and evolving technology shifts.
