SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

March 03, 2010 08:15 ET

ADP National Employment Report Shows U.S. Employment Decreased by 20,000 Private Sector Jobs in February

ROSELAND, NJ--(Marketwire - March 3, 2010) -  According to today's ADP National Employment Report®, private sector employment decreased by 20,000 in February. 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.

Nonfarm Private Employment Highlights -- February Report:

Total employment: -20,000
     
Small businesses* -18,000
Medium businesses** +8,000
Large businesses*** -10,000
     
Goods-producing sector: -37,000
     
Service-providing sector: +17,000
     
Addendum:
 • Manufacturing industry: +3,000
* 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 Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Nonfarm private employment decreased 20,000 from January to February 2010 on a seasonally adjusted basis, according to the ADP National Employment Report. The February employment decline was the smallest since employment began falling in February of 2008. If the recent trend continues, and given first-quarter GDP growth of 5.9%, private employment could rise next month for the first time in two years."

Prakken added, "In February, two large blizzards smothered parts of the east coast during the reference period for the BLS establishment survey. The adverse weather had only a very small effect on today's ADP Report due to the methodology used to construct it. However, the adverse weather is widely expected to depress the BLS estimate of the monthly change in employment for February, but boost it for March." 

"February's ADP Report estimates nonfarm private employment in the service-providing sector increased by 17,000, the second consecutive monthly increase. However, this employment growth was not enough to offset continued losses in the goods-producing sector. Employment in the goods-producing sector declined 37,000, with employment in the manufacturing sector increasing by 3,000. The employment increase in the manufacturing sector was the first since January 2008," said Prakken.

Prakken went on to say, "Large businesses, defined as those with 500 or more workers, saw employment decline by 10,000 while small-size businesses with fewer than 50 workers, declined 18,000. Employment among medium-size businesses, defined as those with between 50 and 499 workers, increased by 8,000, the first increase in employment since January of 2008."

The matched sample used to develop the ADP National Employment Report was derived from ADP data, which during the twelve month period through December 2009, averaged over 360,000 U.S. business clients and represented over 22 million U.S. employees. This approximately represents the size of the matched sample used this month.

Notice of Annual Revisions to the ADP National Employment Report®
 
Automatic Data Processing, Inc., in conjunction with Macroeconomic Advisers, LLC, has published the scheduled annual revisions to the estimates of employment shown in the ADP National Employment Report. This month's ADP Report incorporates revised historical estimates based on the 2010 benchmark revisions to establishment employment published by the Bureau of Labor Statistics on February 6, 2010. The main sources of revision to the ADP National Employment Report are:
     
  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 2008 to March 2009.
  There are no revisions to the methodology of computing the estimates of employment shown in the ADP National Employment Report.
     
 Visit www.adpemploymentreport.com for details.

Small Business Highlights -- February Report:
Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees will be reported in the ADP Small Business Report® each month. The ADP Small Business Report is a subset of the ADP National Employment Report.* 

  • Total small business employment: -18,000
  • Goods-producing sector: -25,000 small business jobs
  • Service-providing sector: +7,000 small business jobs

*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.

Private employment among small businesses decreased by 18,000 in February, according to the ADP Small Business Report released today. 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.

"Employment among small-size businesses, defined as those with fewer than 50 workers, declined 18,000 in February. This decline was the smallest since April of 2008. Small business employment in the service-providing sector increased by 7,000, the second consecutive monthly increase," said Joel Prakken.

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 e-mail alerts and RSS feeds, please visit www.ADPemploymentreport.com. The March 2010 ADP National Employment Report will be released March 31, 2010 at 8:15 A.M. 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 the twelve month period through December 2009, this subset averaged over 360,000 U.S. business clients and over 22 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 nearly $9 billion in revenues and about 570,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers the widest range of HR, 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 and recreational vehicle 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 Web site, www.MacroAdvisers.com

The ADP National Employment Report and ADP Small Business Report are registered trademarks of ADP, Inc.

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