ROSELAND, N.J. — The ADP National Employment Report showed that the U.S. private sector added 54,000 jobs in August 2025, a slowdown from earlier in the year but still reflective of resilience in certain industries. Pay growth held steady, with average annual wages for job-stayers rising 4.4%, while job-changers saw a stronger 7.1% increase.
The monthly report, compiled by ADP Research in partnership with the Stanford Digital Economy Lab, draws from payroll data covering more than 26 million employees. It provides an independent, high-frequency snapshot of the labor market at a time when hiring has been volatile.
Sector and Regional Trends
Leisure and hospitality accounted for the bulk of hiring gains, adding 50,000 jobs, while construction added 16,000. Manufacturing shed 7,000 positions, highlighting weakness in goods production. Among service industries, professional and business services rose by 15,000, but education and health services declined by 12,000.
By region, the Northeast added 15,000 jobs, led by New England and the Mid-Atlantic. The Midwest contributed 14,000, while the South lagged with just 4,000 amid a steep decline of 15,000 in the West South Central states. The West added 8,000, driven by gains in the Pacific region.
Pay Insights
Pay gains varied by sector. Workers in financial activities led with 5.1% growth, while leisure and hospitality employees saw 4.5%. Small firms offered the weakest increases, with businesses employing fewer than 20 workers raising pay by only 2.5%, compared with 4.8% at large companies with 500 or more employees.
ADP Commentary
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Dr. Nela Richardson, chief economist at ADP. She cited labor shortages, consumer caution, and disruption from artificial intelligence as possible explanations for the cooling trend.
The July figures were revised upward, from 104,000 to 106,000 jobs, offering a modest sign of underlying strength. Still, the August slowdown points to challenges for employers navigating higher borrowing costs and an evolving economic landscape.
Looking Ahead
The September ADP National Employment Report will be released on October 1, 2025, at 8:15 a.m. ET. Market watchers will be paying close attention as policymakers and businesses assess whether the slowdown marks a temporary pause or a more sustained shift in U.S. labor market dynamics.
