Produced by ADP Research in collaboration with the Stanford Digital Economy Lab, the report also noted that annual pay increased by 4.5 percent year-over-year.

The ADP National Employment Report is an independent and up-to-date measure of the private-sector labor market, offering insights based on anonymized payroll data from over 25 million U.S. employees. The payroll databases, which are updated continuously, provide high-frequency and near real-time employment data, making the ADP report a crucial tool for understanding labor market trends.

Chief Economist at ADP, Dr. Nela Richardson, commented on the findings, noting a slowdown in hiring momentum despite the consistent pay growth. "After a strong start to the year, hiring is losing momentum," Dr. Richardson said. "Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers."

The detailed report revealed that the pace of hiring in May was at its lowest since March 2023. However, the stability in pay growth is notable, with year-over-year pay growth for job-stayers remaining at 4.5 percent and job-changers seeing a 7 percent rise, unchanged from April's revised figures.

The April data was also adjusted, with the number of jobs added revised down from 62,000 to 60,000. The comprehensive insights provided by the ADP report, including employment and pay data segmented by industry sector and firm size, underscore the ongoing dynamics within the U.S. labor market.

As stated in the report, ADP's Pay Insights measure now captures nearly 14.8 million individual pay change observations each month. This marks a significant increase from the nearly 10 million observations recorded when the measure was first introduced, reflecting ADP's commitment to offering expansive and detailed labor market insights.

The next ADP National Employment Report is scheduled for release at 8:15 a.m. ET on July 2, 2025.