ADP National Employment Report: Annual Pay Up but Job Growth Slows

Highlights

• Private sector employment up by 145k in March
• Annual pay up 6.9% YoY to retain employees
• Employers pulling back from strong hiring, signaling a slowdown

Overview

The ADP National Employment Report for March 2023 provides valuable insights into the state of the US labor market. The report suggests that private sector employment increased by 145,000 jobs in March, which is a positive sign. However, the report also indicates that the economy may be slowing down, as employers are pulling back from a year of strong hiring. The February total of jobs added was revised from 242,000 to 261,000.

One interesting aspect of the report is the fact that annual pay was up 6.9% year-over-year. This is a significant increase and suggests that employers are taking steps to retain employees in a tight labor market. The report also provides a unique perspective on earnings, as it captures the earnings of almost 10 million employees over a 12-month period.

“Our March payroll data is one of several signals that the economy is slowing,” said Nela Richardson, chief economist, ADP. “Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down.”