ROSELAND, N.J. — The ADP National Employment Report showed US private-sector employers added 54,000 jobs in August 2025, signaling slower momentum in hiring as companies confront consumer caution, labor shortages, and technological disruption. Annual pay rose 4.4% year-over-year, unchanged from July, underscoring steady but moderating wage growth.
The monthly report, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, draws from anonymized payroll data covering more than 26 million private-sector employees. It is widely watched as an early indicator of broader US labor market conditions.
Industry Breakdown
The August numbers revealed sharp contrasts across industries:
- Leisure and hospitality led the way, adding 50,000 jobs.
- Construction grew by 16,000 jobs, while manufacturing lost 7,000 positions.
- The trade, transportation, and utilities sector shed 17,000 jobs.
- Professional and business services gained 15,000, while education and health services fell by 12,000.
In total, goods-producing industries added 13,000 jobs and service-providing sectors gained 42,000.
Regional Hiring Trends
The Northeast and Midwest showed the strongest job creation, adding 15,000 and 14,000 positions respectively. The South saw modest gains of 4,000, while the West added 8,000.
- New England added 7,000 jobs.
- Mid-Atlantic contributed 8,000.
- Pacific states gained 12,000, offsetting a 4,000 job loss in the Mountain region.
Employer Size and Pay Insights
Hiring varied by firm size:
- Small businesses (1–49 employees) created 12,000 jobs.
- Medium-sized firms (50–499 employees) added 25,000.
- Large companies (500+ employees) expanded payrolls by 18,000.
On pay, job-stayers saw a 4.4% annual increase, while job-changers reported 7.1% pay growth. Gains were highest in financial activities (5.1%) and manufacturing (4.7%).
Economic Context
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Dr. Nela Richardson, ADP’s chief economist. “A variety of factors could explain the slowdown, from skittish consumers to emerging AI disruptions.”
The report also revised July’s jobs figure upward, from 104,000 to 106,000.
Outlook
The ADP National Employment Report suggests the labor market remains resilient but faces headwinds from cooling demand, high borrowing costs, and structural shifts in technology. Economists will be closely watching September’s data, due October 1, 2025, for signs of whether August’s slowdown reflects a temporary dip or the beginning of a broader cooling trend.