ROSELAND, N.J. - The private sector in the United States saw an increase of 143,000 jobs in September, and annual wages rose by 4.7 percent from the previous year, according to data released today by the ADP National Employment Report. This report is a collaborative effort between ADP Research and the Stanford Digital Economy Lab, offering a high-frequency view of U.S. private-sector employment based on actual payroll data from over 25 million U.S. employees.
The September job growth signifies a rebound in job creation after a five-month period of slowdown, with job gains spread across various sectors. The manufacturing sector experienced job additions for the first time since April, while the information sector was the only one to report job losses. The report also highlighted changes in employment by industry sector, U.S. region, and establishment size.
In terms of wages, the report found that pay gains slowed in September, with job-stayers seeing a slight decrease in year-over-year pay gains to 4.7 percent. Job-changers experienced a more significant drop, with their pay gains falling from 7.3 percent in August to 6.6 percent in September. Nela Richardson, chief economist at ADP, noted that "Stronger hiring didn't require stronger pay growth last month," indicating that the premium for workers changing jobs has decreased.
The report also provided insights into median changes in annual pay by industry sector and firm size, revealing variations across different segments of the market. For instance, job-stayers in the construction sector saw a 5.1 percent increase in annual pay, while those in the information sector witnessed a 4.4 percent increase.
The August total of jobs added was also revised upward from 99,000 to 103,000. The ADP National Employment Report is released monthly and is considered an independent measure of U.S. private employment and pay. It is distributed to the public as part of ADP's commitment to providing valuable labor market insights.
The next ADP National Employment Report is scheduled for release on October 30, 2024. This analysis is based on a press release statement and provides a factual representation of the employment and pay trends observed in the U.S. private sector.
In other recent news, Automatic Data Processing Inc. (NASDAQ:ADP) has been the focus of multiple recent analyst reports. TD Cowen has maintained its Hold rating on ADP shares, while Mizuho Securities continues to hold an Outperform rating. BofA Securities adjusted its price target for ADP shares to $276, maintaining a neutral rating. ADP's fourth quarter of fiscal year 2024 saw a 6% increase in revenue, with substantial growth in adjusted earnings per share.
In potential acquisition news, ADP is reportedly in talks to purchase WorkForce Software for approximately $1.2 billion. This acquisition could bolster ADP's enterprise investments and provide additional growth for the company's fiscal year 2025.
In product development, ADP has launched ADP Lyric HCM, a platform designed to provide flexible, intelligent, and personalized HR solutions globally. The company also set the price for $1 billion in 4.450% senior notes due in 2034 for general corporate purposes.
In labor market news, the U.S. private sector added 99,000 jobs in August, according to the ADP National Employment Report. These are among the recent developments for ADP.
InvestingPro Insights
To complement the ADP National Employment Report findings, let's delve into some key financial metrics and insights about ADP itself, the company behind this influential report.
According to InvestingPro data, ADP boasts a substantial market capitalization of $114.22 billion, underscoring its significant presence in the Professional Services industry. The company's revenue for the last twelve months as of Q4 2024 stood at $19.2 billion, with a healthy revenue growth of 6.61% over the same period. This growth aligns well with the positive job creation trends reported in the ADP National Employment Report.
An InvestingPro Tip highlights that ADP has raised its dividend for 25 consecutive years, demonstrating a strong commitment to shareholder returns. This is particularly noteworthy in the context of the company's role in tracking employment trends, as it suggests a stable financial position even amidst varying labor market conditions.
Another relevant InvestingPro Tip indicates that ADP operates with a moderate level of debt. This prudent financial management could be seen as a strength, especially when considering the company's ability to provide consistent employment data and maintain its market leadership in payroll services.
For investors seeking more comprehensive insights, InvestingPro offers 14 additional tips for ADP, providing a deeper understanding of the company's financial health and market position.
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