U.S. private sector adds 62,000 jobs in April, pay up 4.5%

ROSELAND, N.J. - The U.S. private sector saw an increase of 62,000 jobs in April, while annual pay rose by 4.5 percent compared to the same month last year, as reported by the ADP® National Employment Report™. This monthly report is a collaborative effort between ADP Research and the Stanford Digital Economy Lab, offering a high-frequency view of the labor market utilizing anonymized payroll data from over 25 million U.S. employees. ADP, a prominent player in Professional Services with a market capitalization of $120.34 billion, continues to demonstrate its industry leadership through comprehensive employment insights. InvestingPro analysis reveals the company maintains impressive gross profit margins of 48.23% while delivering steady revenue growth of 7.09% over the last twelve months.

The report provides a snapshot of employment changes across different sectors and regions of the country. In April, job gains were observed in the goods-producing sector, which added 26,000 jobs, with construction leading the increase by contributing 16,000 positions. The service-providing sector experienced a moderate increase of 34,000 jobs. However, certain industries like education and health services, information, and professional and business services saw job losses. For investors seeking deeper insights into ADP’s market position and growth potential, InvestingPro offers exclusive access to over 13 key financial tips and comprehensive analysis through their Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.

Regionally, the Midwest showed the largest job growth, adding 42,000 positions, while other regions like the Northeast and West saw modest increases. In contrast, the South had a minimal gain of 3,000 jobs.

The report also highlighted pay trends, noting a 4.5 percent year-over-year increase in wages for job-stayers in April, a slight deceleration from March. Meanwhile, job-changers experienced a faster wage growth, with their annual pay rising by 6.9 percent.

This employment data, derived from ADP’s payroll databases, reflects the number of employees on ADP client payrolls to provide insights into the labor market. The report also includes weekly job data from the previous month. According to Dr. Nela Richardson, chief economist at ADP, the current labor market reflects an environment of uncertainty where employers are cautious about hiring amid mixed economic signals.

The report’s findings are based on a press release statement and offer a near real-time measure of U.S. private-sector employment. For detailed information on employment and pay data, including interactive charts and methodology, the ADP National Employment Report is available to the public each month at no cost. The next report is scheduled for release on June 4, 2025. According to InvestingPro’s Fair Value assessment, ADP is currently trading slightly above its calculated Fair Value, making it an interesting case study for investors focused on market valuation metrics.

In other recent news, ADP reported its third-quarter fiscal 2025 earnings, surpassing analyst expectations. The company posted an adjusted earnings per share of $3.06, exceeding the consensus estimate of $2.97. Revenue for the quarter reached $5.55 billion, which also topped the projected $5.49 billion. Although the exact year-over-year revenue growth percentage was not disclosed, the results indicate an increase compared to the same period last year. The company did not provide specific guidance for the upcoming quarter or fiscal year but mentioned a revised fiscal 2025 outlook in its earnings release. Details of this revised outlook were not included in the available information. ADP continues to emphasize its focus on enhancing work processes through innovative products and services. The company plans to host a conference call for analysts to discuss these results further.

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