Private Sector Hiring Slows as Pay for Job-Changers Surges

The latest ADP National Employment Report, produced in collaboration with the Stanford Digital Economy Lab, highlights a cooling labor market. Hiring was largely driven by the service sector, which added 47,000 positions, while goods-producing industries saw a slight contraction of 3,000 roles. Education and health services led the growth with 36,000 new jobs, offsetting significant losses in leisure and hospitality.

Dr. Nela Richardson, chief economist at ADP, noted that hiring patterns are shifting as employers adapt to changing macroeconomic conditions. The data shows that job-changers are particularly sensitive to these pressures, with their wage gains outpacing the 4.4 percent annual pay growth recorded for those who remained in their current positions. Regional performance varied significantly, with the Northeast posting 37,000 new hires, while the Midwest experienced a decline of 9,000 jobs.