Private-sector employment increased by 170,000 from December to
January on a seasonally adjusted basis, according to the latest ADP
National Employment Report® released today. The ADP National
Employment Report, created by Automatic Data Processing, Inc.
(ADP®), in partnership with Macroeconomic Advisers, LLC, is derived
from actual payroll data and measures the change in total nonfarm
private employment each month. The estimated gain in employment
from November to December was revised down to 292,000 from the
initially reported 325,000.
U.S. Nonfarm Private Employment Highlights -- January 2012 Report:
-- Total employment: +170,000
-- Small businesses:* + 95,000
-- Medium businesses:** + 72,000
-- Large businesses:*** + 3,000
-- Goods-producing sector: + 18,000
-- Service-providing sector: +152,000
Addendum:
-- Manufacturing industry: + 10,000
* Small businesses represent payrolls with 1-49 employees
** Medium businesses represent payrolls with 50-499 employees
*** Large businesses represent payrolls with more than 499 employees
Note: All data included in the ADP National Employment Report is based on
size of payroll. In some cases, small and medium-size payrolls belong
to businesses employing more workers than indicated by the size
grouping.
According to today's ADP National Employment Report, employment
in the nonfarm private business sector rose 170,000 from December
to January on a seasonally adjusted basis. Employment in the
private, service-providing sector increased 152,000 in January,
after rising a revised 241,000 in December. Employment in the
private, goods-producing sector rose 18,000 in January.
Manufacturing employment increased 10,000, while construction
employment advanced 2,000 during that period.
"Over the last three months, the monthly gains in employment
shown in The ADP National Employment Report have averaged 223,000,
compared to 163,000 per month over all of 2011," said Carlos
Rodriguez, President and CEO of ADP. "This is a positive
development that we hope will continue throughout the course of
2012."
According to Joel Prakken, Chairman of Macroeconomic Advisers,
LLC, "Labor market conditions continue to improve at a moderate
pace. Today's report marks the twenty-fourth consecutive monthly
gain in private employment as measured in the ADP National
Employment Report. This pick-up is consistent with the recent
acceleration of the nation's Gross Domestic Product which, in the
fourth quarter, grew at 2.8 percent -- the fastest pace since
second quarter of 2010," Prakken said.
Prakken continued: "Other indicators suggest some firming of
labor market conditions as well, including the downward trend in
unemployment claims, upturns in the components of consumer
sentiment and confidence influenced by perceptions about the
availability of jobs, and a rising trend in workers voluntary
quitting their jobs.
"Employment grew in all the major sectors of the economy tracked
in The Report, and across payrolls of almost all sizes. Employment
on medium payrolls -- those with 50 to 499 workers -- rose 72,000
in January. Employment on large payrolls -- those with 500 or more
workers -- increased 3,000 during that same period, but did decline
slightly in the manufacturing sector," Prakken noted.
The matched sample used to develop the ADP National Employment
Report was derived from ADP data, which, during 2011, averaged
about 344,000 U.S. business clients and represented over 21 million
U.S. employees. This approximately represents the size of the
matched sample used this month.
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Notice of Intent to Make Annual Revisions to the ADP National
Employment Report®
On March 7, 2012, Automatic Data Processing, Inc., in conjunction
with Macroeconomic Advisers, LLC, will publish annual revisions of
the estimates of employment shown in the ADP National Employment
Report. These revisions will reflect:
-- Updated regression estimates used to adjust for historical
differences in the variances of the monthly growth rates of
employment reported by the Bureau of Labor Statistics and computed
from ADP data;
-- Updated estimates of the differences in the historical averages of
the growth rates of employment reported by the Bureau of Labor
Statistics and computed from ADP data;
-- Updated estimates of historical seasonal factors;
-- The reference month for establishing the levels of employment shown
in the ADP National Employment Report will be advanced from March
2010 to March 2011; and
-- There are no revisions to the methodology of computing the estimates
of employment shown in the ADP National Employment Report.
---------------------------------------------------------------------------
Small Business Highlights -- January
Report: Due to the important contribution small businesses
make to economic growth, employment data that is specific to
businesses with fewer than 50 employees is reported in the ADP
Small Business Report® each month. The ADP Small Business Report is
a subset of the ADP National Employment Report.*
Prakken said: "Employment on small payrolls -- those with up to
49 workers -- rose 95,000 in January, with most jobs created by
small, service-providing businesses."
- Total nonfarm private small business employment: 95,000 jobs
created
- Goods-producing sector: 11,000 small business jobs created
- Service-providing sector: 84,000 small business jobs
created
*All size data included in the ADP National Employment Report is
based on size of payroll. In some cases, small and medium-size
payrolls belong to businesses employing more workers than indicated
by the size grouping.
Additional information about small business employment,
including charts on monthly job growth and employment levels, along
with historical data, is available at
http://www.smallbusinessreport.adp.com.
To obtain additional information about the ADP National
Employment Report, including additional charts, supporting data and
the schedule of future release dates, or to subscribe to the
monthly email alerts and RSS feeds, please visit
www.ADPemploymentreport.com.
The February 2012 ADP National Employment Report will be
released March 7, 2012 at 8:15 AM ET.
About the ADP National
Employment Report® The ADP National Employment Report®,
sponsored by ADP®, was developed and is maintained by Macroeconomic
Advisers, LLC. It is a measure of employment derived from an
anonymous subset of roughly 500,000 U.S. business clients. During
2011, this subset averaged about 344,000 U.S. business clients and
represented over 21 million U.S. employees working in all private
industrial sectors. The ADP Small Business Report is a monthly
estimate of private nonfarm employment among companies in the
United States with 1-49 employees and is a subset of the ADP
National Employment Report. The data for both reports is collected
for pay periods that can be interpolated to include the week of the
12th of each month, and processed with statistical methodologies
similar to those used by the U.S. Bureau of Labor Statistics to
compute employment from its monthly survey of establishments. Due
to this processing, this subset is modified to make it indicative
of national employment levels; therefore, the resulting employment
changes computed for the ADP National Employment Report are not
representative of changes in ADP's total base of U.S. business
clients.
For a description of the underlying data and the statistical
properties of the series, please see "ADP National Employment
Report: Development Methodology" at
http://ADPemploymentreport.com/methodology.aspx.
About ADP Automatic Data Processing, Inc.
(NASDAQ: ADP), with about $10 billion in revenues and approximately
570,000 clients, is one of the world's largest providers of
business outsourcing solutions. Leveraging over 60 years of
experience, ADP offers a wide range of human resource, payroll, tax
and benefits administration solutions from a single source. ADP's
easy-to-use solutions for employers provide superior value to
companies of all types and sizes. ADP is also a leading provider of
integrated computing solutions to auto, truck, motorcycle, marine,
recreational vehicle, and heavy equipment dealers throughout the
world. For more information about ADP or to contact a local ADP
sales office, reach us at 1.800.225.5237 or visit the company's Web
site at www.ADP.com.
About Macroeconomic Advisers, LLC
Macroeconomic Advisers, LLC (MA) has been the most trusted source
for U.S. macroeconomic forecasts and commentary, monetary and
fiscal policy analysis, and econometric modeling for 25 years. MA's
clients include leading financial service firms, nonfinancial
corporations, key policymaking agencies of the U.S. government, as
well as State and Foreign Government agencies. Additional
information on Macroeconomic Advisers, LLC is available on the
company's website, www.MacroAdvisers.com.
The ADP logo, ADP, ADP National Employment Report, and ADP Small
Business Report are registered trademarks of ADP, Inc.
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Allan Chernoff (212) 453-2053 (917) 239-7270 mobile
allan.chernoff@fleishman.com
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