ROSELAND, N.J. - The U.S. private sector saw an increase of 192,000 jobs in April, with annual pay rising 5.0 percent from the previous year, as reported by the ADP National Employment Report, a collaboration between the ADP Research Institute and the Stanford Digital Economy Lab. This independent measure provides a high-frequency view of the labor market, utilizing anonymized payroll data from over 25 million U.S. employees.
April's job growth was widespread, with significant contributions from the construction and leisure/hospitality sectors, adding 35,000 and 56,000 jobs, respectively. In contrast, the information sector experienced a decline, shedding 4,000 jobs and noting the smallest pace of pay gains since August 2021. The average hiring pace has picked up over the past three months, nearly reaching the levels seen in the first half of 2023.
Regionally, the South led the way with 124,000 new jobs, while the West added the fewest at 11,000. Small establishments with 1-19 employees saw an increase of 39,000 jobs, and large establishments with over 500 employees added 98,000 jobs.
Pay growth for job-changers slowed in April, dropping from 10.1 percent in March to 9.3 percent. However, pay gains for job-stayers remained stable at 5 percent. Pay insights also revealed that job-stayers in the leisure/hospitality sector experienced the highest median pay growth at 5.8 percent.
The March total of jobs added was revised upward from 184,000 to 208,000. The ADP National Employment Report is released monthly and is available to the public free of charge. It is designed to provide businesses and governments with a credible source of labor market information.
The next ADP National Employment Report is scheduled for release on June 5, 2024. This analysis is based on a press release statement from ADP, Inc., a leading provider of human capital management solutions.
InvestingPro Insights
Amidst the backdrop of a resilient job market, Automatic Data Processing (NASDAQ:ADP), a key player in human capital management, has been demonstrating financial robustness and consistency in shareholder returns. With the company's recent performance and future outlook in mind, let's delve into some key metrics and tips from InvestingPro.
ADP's market capitalization stands strong at $99.37 billion, underscoring its significant presence in the industry. The company's Price to Earnings (P/E) ratio is currently at 28.12, reflecting a premium valuation which might be justified by its track record and stability. This is further supported by its Adjusted P/E ratio for the last twelve months as of Q2 2024, which is slightly lower at 27.97. ADP's commitment to its shareholders is evident through its dividend track record, having raised its dividend for 25 consecutive years and maintained dividend payments for 51 years.
InvestingPro Tips highlight ADP's perfect Piotroski Score of 9, indicating strong financial health, and its status as a prominent player in the Professional Services industry. While the company is trading at high revenue and book value multiples, its historical profitability and analysts' predictions for continued profitability this year suggest confidence in its business model. Additionally, ADP's stock is known for low price volatility, providing a sense of stability for investors.
For those seeking further insights and analysis on ADP, InvestingPro offers additional tips, including the company's moderate level of debt and high return over the last decade. To explore these and other tips, visit InvestingPro. And remember, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro Tips available for ADP on the platform, providing a comprehensive look at the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.