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Workers assemble Volkswagen at a plant in Tennessee. © Erik Schelzig

Private Sector Employment Increased by 497,000 Jobs in June; Annual Pay Was Up 6.4%


ADP National Employment Report

Published on July 10, 2023

Private sector employment increased by 497,000 jobs in June and annual pay was up 6.4 percent year-over-year, according to the June ADP® National Employment ReportTM produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab.

The jobs report and pay insights use ADP’s fine-grained anonymized and aggregated payroll data of over 25 million U.S. employees to provide a representative picture of the labor market. The report details the current month’s total private employment change, and weekly job data from the previous month. ADP’s pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

“Consumer-facing service industries had a strong June, aligning to push job creation higher than expected,” said Nela Richardson, chief economist, ADP. “But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge.”

June 2023 Report Highlights*

View the ADP National Employment Report and interactive charts at adpemploymentreport.com.

Jobs Report

Private employers added 497,000 jobs in June

Job creation surged in June, led by consumer-facing services. Leisure and hospitality, trade and transportation, and education and health services showed strong gains. Still, the market was fragmented, with manufacturing, information, and finance showing declines.

Change in U.S. Private Employment:     497,000

Change by Industry Sector

–  Goods-producing:     124,000

  • Natural resources/mining     69,000
  • Construction     97,000
  • Manufacturing     -42,000

–  Service-providing:     373,000

  • Trade/transportation/utilities     90,000
  • Information     -30,000
  • Financial activities     -16,000
  • Professional/business services     -5,000
  • Education/health services     74,000
  • Leisure/hospitality     232,000
  • Other services     28,000

Change by U.S. Regions

–  Northeast:     250,000

  • New England     77,000
  • Middle Atlantic     173,000

–  Midwest:     162,000

  • East North Central     83,000
  • West North Central     79,000

–  South:     -10,000

  • South Atlantic     10,000
  • East South Central     -12,000
  • West South Central     -8,000

–  West:     83,000

  • Mountain     3,000
  • Pacific     80,000

Change by Establishment Size

–  Small establishments:     299,000

  • 1-19 employees     162,000
  • 20-49 employees     137,000

–  Medium establishments:     183,000

  • 50-249 employees     171,000
  • 250-499 employees     12,000

–  Large establishments:     -8,000

  • 500+ employees     -8,000

Pay Insights 

Pay gains slowed again in June
Job stayers saw a year-over-year pay increase of 6.4 percent, down from 6.6 percent in May. For job changers, pay gains slowed for the 12th straight month, to 11.2 percent, the slowest pace of growth since October 2021.

Median Change in Annual Pay (ADP matched person sample)

–  Job-Stayers      6.4%

–  Job-Changers     11.2%

Median Change in Annual Pay for Job-Stayers by Industry Sector

–  Goods-producing:

  • Natural resources/mining     6.4%
  • Construction     6.7%
  • Manufacturing     5.9%

–  Service-providing:

  • Trade/transportation/utilities     6.3%
  • Information     5.9%
  • Financial activities     6.7%
  • Professional/business services     6.2%
  • Education/health services     6.9%
  • Leisure/hospitality     7.9%
  • Other services     6.3%

Median Change in Annual Pay for Job-Stayers by Firm Size

–  Small firms:                                                                

  • 1-19 employees     5.4%
  • 20-49 employees     6.5%

–  Medium firms:                                                             

  • 50-249 employees     6.7%
  • 250-499 employees     6.6%

–  Large firms:                                                                

  • 500+ employees     6.5%

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.

Finance Reporter