ROSELAND, N.J. — The ADP National Employment Report for August 2025 showed U.S. private-sector employers added 54,000 jobs, while annual pay growth held steady at 4.4%, according to data released Thursday by ADP Research Institute in collaboration with Stanford’s Digital Economy Lab.
The report, which draws on anonymized payroll records of more than 26 million private-sector workers, underscores a cooling labor market. Despite growth in leisure, hospitality, and construction, hiring momentum slowed compared with earlier in the year.
Chief economist Nela Richardson highlighted the challenges: “The year started with strong job growth, but that momentum has been whipsawed by uncertainty. Labor shortages, cautious consumers, and AI-related disruptions all play a role in the slowdown.”
Industry Breakdown
The August figures revealed uneven gains across industries:
- Goods-producing jobs: +13,000, led by construction (+16,000) and natural resources (+4,000), while manufacturing lost 7,000.
- Service-providing jobs: +42,000, with leisure and hospitality adding 50,000 and professional services gaining 15,000. By contrast, trade, transportation, and utilities shed 17,000 jobs, and education and health services declined by 12,000.
Regional Performance
- Northeast: +15,000, with balanced gains across New England and the Mid-Atlantic.
- Midwest: +14,000, boosted by the East North Central region.
- South: +4,000, as losses in the West South Central offset gains elsewhere.
- West: +8,000, supported by growth in the Pacific states.
Establishment Size
Hiring remained broad-based, with:
- Small firms (1–49 employees): +12,000 jobs.
- Medium firms (50–499 employees): +25,000 jobs.
- Large firms (500+ employees): +18,000 jobs.
Pay Insights
Pay trends were steady, with job-stayers recording 4.4% annual growth, while job-changers continued to see stronger gains of 7.1%. Sector pay increases varied:
- Financial activities led job-stayers with 5.1% growth.
- Manufacturing and leisure/hospitality saw pay increases of 4.7% and 4.5%, respectively.
- Small firms lagged, with employees at businesses under 20 workers seeing only 2.5% pay growth.
Context and Outlook
The August report follows an upward revision of July’s job gains, which were adjusted from 104,000 to 106,000. While overall payroll growth has slowed, the resilience of leisure and construction suggests continued demand in consumer-facing and infrastructure sectors.
The next ADP National Employment Report will be released on October 1, 2025.
