ROSELAND, N.J. — The ADP National Employment Report showed that U.S. private employers added 54,000 jobs in August 2025, signaling slower hiring momentum as businesses adjust to consumer caution, labor shortages, and ongoing disruption from artificial intelligence. Annual pay growth for job-stayers remained steady at 4.4%, while job-changers saw a 7.1% increase, according to the payroll giant’s monthly data release.
Chief economist Nela Richardson of ADP noted that the labor market’s strong start to the year has softened. “A variety of factors could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions,” Richardson said.
Industry Breakdown
Hiring remained uneven across sectors.
- Leisure and hospitality posted the strongest gains with 50,000 new jobs, highlighting consumer demand resilience in services.
- Construction added 16,000 positions, while manufacturing shed 7,000 jobs, underscoring weakness in industrial production.
- Trade, transportation, and utilities fell by 17,000, and education and health services lost 12,000 jobs.
- Professional and business services expanded by 15,000, and information added 7,000 roles.
Overall, goods-producing industries contributed 13,000 jobs, while service-providing industries accounted for 42,000.
Regional Performance
Job gains varied by geography:
- Northeast: +15,000 (boosted by New England and Mid-Atlantic hiring)
- Midwest: +14,000, led by East North Central
- South: +4,000, weighed down by losses in West South Central
- West: +8,000, with California and Pacific states adding most jobs
Firm Size Trends
Hiring was spread across businesses of different sizes:
- Small firms (1–49 employees): +12,000
- Medium firms (50–499 employees): +25,000
- Large firms (500+ employees): +18,000
Pay Insights
Wage growth was steady across industries and firm sizes. Job-stayers saw a 4.4% median annual pay increase, with financial services leading at 5.1%. Job-changers continued to command higher pay, averaging a 7.1% annual rise.
- Small firms (1–19 employees): 2.5% pay growth, the weakest segment
- Medium firms (50–499 employees): 4.7%
- Large firms (500+ employees): 4.8%
Outlook
The July jobs total was revised upward from 104,000 to 106,000. The next ADP National Employment Report will be released October 1, 2025, offering an updated look at private-sector hiring conditions ahead of the fall economic cycle.
ADP’s report, based on anonymized payroll data covering over 26 million private-sector workers, remains a closely watched measure of U.S. labor market health.