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ADP National Employment Report: Private Sector Employment Increased by 37,000 Jobs in May; Annual Pay was Up 4.5%

ROSELAND, N.J. , June 4, 2025 /PRNewswire/ -- Private sector employment increased by 37,000 jobs in May and annual pay was up 4.5 percent year-over-year, according to the May ADP® National Employment ReportTM produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab"). The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. As of January 2025, ADP's Pay Insights measure captures nearly 14.8 million individual pay change observations each month, up from nearly 10 million when it launched.

"After a strong start to the year, hiring is losing momentum," said Dr. Nela Richardson, chief economist, ADP. "Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers."

May 2025 Report Highlights *

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

JOBS REPORT

Private employers added 37,000 jobs in May
The pace of hiring in May reached its lowest level since March 2023.

Change in U.S. Private Employment :     37,000

Change by Industry Sector
 - Goods-producing:     -2,000

  • Natural resources/mining     -5,000
  • Construction     6,000
  • Manufacturing     -3,000

- Service-providing:     36,000

  • Trade/transportation/utilities     -4,000
  • Information     8,000
  • Financial activities     20,000
  • Professional/business services     -17,000
  • Education/health services     -13,000
  • Leisure/hospitality     38,000
  • Other services     4,000

Change by U.S. Regions
 - Northeast:     -19,000

  • New England     -16,000
  • Middle Atlantic     -3,000

- Midwest:     20,000

  • East North Central     23,000
  • West North Central     -3,000

- South:     -5,000

  • South Atlantic     20,000
  • East South Central     19,000
  • West South Central     -44,000

- West:     37,000

  • Mountain     35,000
  • Pacific     2,000

Change by Establishment Size
 - Small establishments:     -13,000

  • 1-19 employees     -6,000
  • 20-49 employees     -7,000

- Medium establishments:     49,000

  • 50-249 employees     51,000
  • 250-499 employees     -2,000

- Large establishments:     -3,000

  • 500+ employees     -3,000

PAY INSIGHTS

Pay gains were little changed in May
Year-over-year pay growth for job-stayers was little changed in May, at 4.5 percent. Pay for job-changers rose 7 percent, unchanged from April's revised figure.

Median Change in Annual Pay (ADP matched person sample)
 - Job-Stayers      4.5%
 - Job-Changers     7 .0%

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

  • Natural resources/mining     4.5%
  • Construction     4.6%
  • Manufacturing     4.6%

- Service-providing:                                               

  • Trade/transportation/utilities     4.2%
  • Information     4.2%
  • Financial activities     5.2%
  • Professional/business services     4.2%
  • Education/health services     4.6%
  • Leisure/hospitality     4.8%
  • Other services     4.3%

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

  • 1-19 employees     2.6%
  • 20-49 employees     4.1%

- Medium firms:                                                             

  • 50-249 employees     4.8%
  • 250-499 employees     4.9%

- Large firms:                                                                

  • 500+ employees     4.8%

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.

The April total number of jobs added was revised from 62,000 to 60,000. The historical data file and weekly data for the previous month are available at https://adpemploymentreport.com/.

To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.    

The June 2025ADP National Employment Report will be released at 8:15 a.m. ET on July 2, 2025.

About the ADP® National Employment ReportTM

The ADP National Employment Report is an independent measure of the change in U.S. private employment and pay derived from actual, anonymized payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research in collaboration with the Stanford Digital Economy Lab.

The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.

About the ADP Research

The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policymakers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.

About ADP (NASDAQ – ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential.  HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people.   Learn more at ADP.com

ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are trademarks of ADP, Inc. All other marks are the property of their respective owners.

Copyright © 2025 ADP, Inc. All rights reserved.

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SOURCE ADP, Inc.