The private sector added 122,000 jobs in December 2024, while annual pay growth moderated to 4.6% year-over-year, according to the ADP® National Employment Report™. This report, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, offers a detailed, high-frequency view of the private-sector labor market using anonymized payroll data from over 25 million U.S. employees.
The ADP National Employment Report provides near real-time insights into the labor market by leveraging continuously updated payroll data. It reports monthly changes in private employment and weekly job data from the prior month. ADP’s pay measure reflects annual earnings changes for a cohort of nearly 10 million employees, offering unique insights into wage trends.
“The labor market slowed to a modest pace of growth in December, reflecting a downshift in hiring and pay gains,” said Nela Richardson, Chief Economist at ADP. “Health care emerged as a leading sector, creating more jobs in the second half of the year than any other industry.”
Jobs Report: Key Findings
Overall Job Growth:
- Private employers added 122,000 jobs in December.
- Several industries saw hiring slowdowns, with manufacturing employment declining for the third consecutive month.
Employment Changes by Industry Sector:
- Goods-Producing Industries:
- Natural Resources/Mining: +10,000
- Construction: -6,000
- Manufacturing: -11,000
- Service-Providing Industries:
- Trade/Transportation/Utilities: +27,000
- Information: -5,000
- Financial Activities: +12,000
- Professional/Business Services: -5,000
- Education/Health Services: +57,000
- Leisure/Hospitality: +22,000
- Other Services: +13,000
Employment Changes by Region:
- Northeast: +19,000
- New England: +6,000
- Middle Atlantic: +13,000
- Midwest: +7,000
- East North Central: -2,000
- West North Central: +9,000
- South: +19,000
- South Atlantic: -1,000
- East South Central: +4,000
- West South Central: +16,000
- West: +82,000
- Mountain: +26,000
- Pacific: +56,000
Employment Changes by Establishment Size:
- Small Establishments (1-49 employees): +5,000
- Medium Establishments (50-499 employees): +9,000
- Large Establishments (500+ employees): +97,000
Pay Insights
Moderating Pay Gains:
- Year-over-year pay growth for job-stayers slowed to 4.6%, the lowest rate since July 2021.
- Pay growth for job-changers decreased slightly to 7.1%.
Median Change in Annual Pay:
- Job-Stayers: +4.6%
- Job-Changers: +7.1%
Pay Growth by Industry Sector (Job-Stayers):
- Goods-Producing Industries:
- Natural Resources/Mining: +3.8%
- Construction: +5.1%
- Manufacturing: +4.5%
- Service-Providing Industries:
- Trade/Transportation/Utilities: +4.4%
- Information: +4.4%
- Financial Activities: +4.9%
- Professional/Business Services: +4.5%
- Education/Health Services: +4.9%
- Leisure/Hospitality: +4.6%
- Other Services: +4.7%
Pay Growth by Firm Size (Job-Stayers):
- Small Firms (1-49 employees): +3.9% to +4.6%
- Medium Firms (50-499 employees): +4.8%
- Large Firms (500+ employees): +4.6%
The ADP National Employment Report is a trusted resource for insights into the U.S. private-sector labor market. For the latest updates and detailed data, visit ADP Research Institute.