Regional Employment Trends
Regionally, the South led job creation with 55,000 new positions, followed by the West with 32,000, the Northeast with 21,000, and the Midwest with 17,000 jobs. Within these regions, the South Atlantic and Middle Atlantic areas showed the strongest growth.
Employment by Establishment Size
Large establishments (500+ employees) added 62,000 jobs, while medium-sized establishments (50-499 employees) contributed 70,000 jobs. Small establishments (1-49 employees) saw a decrease of 7,000 jobs, with the 20-49 employee category experiencing the most significant decline.
Pay Insights
Annual pay growth for job-stayers slowed to 4.8%, the lowest rate in three years. Job-changers saw a more substantial deceleration, with pay gains dropping to 7.2% from 7.7%. This trend aligns with the Federal Reserve’s efforts to curb inflation.
Industry-Specific Pay Changes
In the goods-producing sector, construction workers experienced the highest pay increase at 5.3%. Within service-providing industries, education/health services led with a 5.2% increase, closely followed by financial activities and other services at 5.0% each.
Pay Changes by Firm Size
Medium-sized firms (50-249 employees) offered the highest pay increases at 5.0%, while small firms with 1-19 employees had the lowest at 4.1%.
Nela Richardson, ADP’s chief economist, notes that the slowing wage growth aligns with the Federal Reserve’s inflation-control efforts. She suggests that if inflation rises again, it’s unlikely to be due to labor market pressures.
Source : FXEmpire