According to the latest ADP National Employment Report, released on June 4, 2025, private sector employment in the United States increased by 37,000 jobs in May. This report, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, highlights not only the job growth but also an annual pay increase of 4.5 percent year-over-year.
The ADP National Employment Report serves as an independent measure of the private-sector labor market, utilizing actual, anonymized payroll data from over 25 million U.S. employees. This report provides a high-frequency view of employment trends, making it a critical tool for understanding the current state of the labor market.
By analyzing continuous payroll data, the report delivers a near real-time measure of U.S. employment. The data reflects the number of employees on ADP client payrolls (referred to as Payroll Employment), offering a comprehensive picture of employment changes and trends.
In May, the pace of job creation reached its lowest level since March 2023. The ADP report indicated that private employers added 37,000 jobs, with notable shifts across various industry sectors:
Goods-producing sector: -2,000 jobs Service-providing sector: +36,000 jobsWithin the goods-producing sector, the construction industry saw a decline of 5,000 jobs, while manufacturing lost 3,000 jobs. Conversely, the service-providing sector gained significantly, particularly in leisure and hospitality, which added 38,000 jobs.
The report also outlined changes in employment by U.S. regions. The Northeast experienced a loss of 19,000 jobs, while the Midwest saw an increase of 20,000 jobs. The South had a net loss of 5,000 jobs, whereas the West added 37,000 jobs.
Examining the job growth by establishment size reveals that small establishments (1-19 employees) lost 13,000 jobs, while medium establishments (50-249 employees) gained 49,000 jobs. Large establishments (500+ employees) saw a slight decrease of 3,000 jobs.
The ADP Pay Insights data indicates that pay growth remained stable in May. Year-over-year pay growth for job-stayers held firm at 4.5 percent, while pay for job-changers rose by 7 percent, consistent with April's figures. This stability in pay growth is significant for both employee retention and recruitment strategies.
Different sectors experienced varying pay changes, with notable figures such as:
Financial activities: 5.2% Leisure/hospitality: 4.8% Education/health services: 4.6%The ADP National Employment Report is a vital resource for understanding the dynamics of the U.S. labor market. As the economy navigates through fluctuating employment rates and pay growth, businesses and policymakers can utilize this data for informed decision-making. To access the full report and interactive charts, visit www.adpemploymentreport.com.
For those interested in receiving updates, the next ADP National Employment Report will be released on July 2, 2025, at 8:15 a.m. ET.
