Private sector employment in the United States saw a significant increase in July, with 324,000 new jobs created, according to the ADP National Employment Report. This report, which provides a near real-time measure of U.S. employment based on actual payroll data, also revealed a year-over-year increase in annual pay of 6.2 percent.
The job growth in July was primarily driven by the leisure and hospitality industry, which added a substantial number of positions. However, the manufacturing sector continued to experience job losses for the fifth consecutive month, highlighting ongoing challenges in that particular industry.
When examining private employment by industry sector, it was found that goods-producing industries added 21,000 jobs, while service-providing industries contributed significantly more with 303,000 new positions.
In terms of regional changes in private employment, the Northeast emerged as the frontrunner, adding 276,000 jobs. The Midwest followed suit with a commendable increase of 129,000 jobs. Unfortunately, the South experienced a decline of 144,000 jobs, while the West saw a modest growth of 55,000 jobs.
The report also analyzed private employment by establishment size, revealing that small establishments made the most significant contribution with 237,000 new jobs. Medium establishments added 138,000 positions, while large establishments faced a loss of 67,000 jobs.
Interestingly, the ADP National Employment Report noted that job stayers, individuals who remained in their current employment, saw a 6.2 percent increase in annual pay. On the other hand, job changers experienced a more substantial increase of 10.2 percent.
The pay growth for job stayers varied among different industry sectors and firm sizes, indicating disparities in compensation across the job market.
It is worth mentioning that the figures for June were revised from an initial report of 497,000 new jobs to 455,000 jobs. This revision, based on more accurate data, further emphasizes the importance of the ADP National Employment Report as it provides an independent measure of U.S. private employment and pay derived from actual payroll data.
Overall, the report showcases encouraging growth in the private sector, particularly in terms of employment, with an impressive number of new job opportunities created in various industries. Additionally, the increase in annual pay suggests a positive outlook for workers’ income in the coming months.
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