The latest ADP National Employment Report, produced with the Stanford Digital Economy Lab, highlights an uneven labor landscape. Job creation remained concentrated in the service sector, which accounted for 96,000 of the new positions, while goods-producing industries added only 2,000. Education and health services led the gains, contributing 48,000 jobs, followed by trade and transportation. Conversely, the leisure and hospitality sector struggled for the sixth consecutive month, reflecting the broader volatility in hiring trends.

Wage growth remains a focal point for the market. The median pay gain for those who stayed in their current roles held steady at 4.4 percent year-over-year. In contrast, workers who changed jobs saw their annual pay accelerate to 6.6 percent. Dr. Nela Richardson, chief economist at ADP, noted that the current environment reflects a tug-of-war between supply and demand, with labor shortages in certain industries complicating the overall picture. Small businesses were the primary engine of growth, accounting for 53,000 of the new hires, while large establishments added 25,000 positions.