A new report from ADP suggests that employers are continuing to add jobs—though fewer new employees were added to the payroll in August compared with July. According to the ADP National Employment Report, although there were 270,000 new jobs added to the economy in July, only 132,000 jobs were added in August, representing a reduction in growth of more than 50 percent.
The new jobs push total employment in the private sector to 121,571,000, exceeding pre-pandemic levels for the first time. Still, not all industries saw equal job gains. For instance, while the leisure and hospitality sector added 96,000 new jobs, there was actually a reduction of around 20,000 jobs within financial services.
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"Our data suggests a recent shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy's conflicting signals," says Nela Richardson, ADP's chief economist. "We could be at an inflection point, from supercharged job gains to something more normal."
Another report from ADP looked at annual pay increases, finding that salaries were increasing rapidly, nearly on par with inflation. Annual pay rose by 7.6 percent in the period leading up to August 2022, compared with an average increase of 2 percent in early 2021. Employees working for larger firms saw bigger increases: Companies with more than 500 employees raised salaries by 8.3 percent, on average, while companies with 1 to 19 employees saw only a 5.4 percent average bump in pay.
Again, different industries saw different increases, per the report. The highest pay gains were in leisure and hospitality, at 12.1 percent, and the trade, transportation, and utilities sector, at 8.4 percent. Pay in construction increased by just 6.7 percent.
But the biggest raises went to job hoppers. Although loyal employees got salary gains of 7.6 percent, people who changed jobs got an average increase in pay of 16.1 percent.
From: BenefitsPRO
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