SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

October 06, 2010 08:15 ET

U.S. Private Sector Employment Decreased by 39,000 Jobs in September, According to ADP National Employment Report

ROSELAND, NJ--(Marketwire - October 6, 2010) -  Private-sector employment decreased by 39,000 from August to September on a seasonally adjusted basis, according to the latest ADP National Employment Report® released todayThe 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 - September Report:

 • Total employment: -39,000
     
 • Small businesses* -14,000
 • Medium businesses** -14,000
 • Large businesses*** -11,000
     
 • Goods-producing sector: -45,000
     
 • Service-providing sector: +6,000
     
Addendum:
 • Manufacturing industry: -17,000
 
* 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 the ADP Report, employment in the service-providing sector rose by 6,000 in September, the eighth consecutive monthly gain. This increase was not enough to offset an employment decline in the goods-producing sector of 45,000. Construction employment dropped by 28,000 during September and manufacturing employment declined 17,000, the third consecutive monthly decline.

"Although some industry sectors are experiencing positive job growth, at this point in the recovery job creation remains surprisingly anemic, with no tangible evidence of acceleration," said Gary C. Butler, President and Chief Executive Officer of ADP. "Consumers remain cautious about their spending which translates to lower demand for products and services. Businesses need to see growing demand before they will increase hiring. To support job creation, our nation's policymakers need to do more to incentivize businesses to invest in expansion and to accelerate key tax and regulatory decisions that will reduce uncertainty across the economy."

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "The decline in private employment in September confirms a pause in the economic recovery, already evident in other data. A deceleration of employment occurred in all the major sectors shown in the ADP Report and for all sizes of payroll. The September decline in employment followed seven monthly increases from February through August. However, over those seven months, the average monthly gain in employment was an anemic 34,000. There simply is no momentum in employment."

Prakken added, "Unlike the estimate of total establishment employment to be released on Friday by the Bureau of Labor Statistics (BLS), today's ADP National Employment Report does not include the effects of federal hiring -- and now firing -- for the 2010 Census. Hiring for the census peaked in May and is still tapering down slightly."

"Large businesses, defined as those with 500 or more workers, decreased by 11,000 while employment among medium-size businesses, defined as those with between 50 and 499 workers, decreased by 14,000. Employment among small-size businesses, defined as those with fewer than 50 workers, decreased by 14,000," said Prakken.

The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the twelve-month period through June 2010, averaged over 340,000 U.S. business clients and represented over 21 million U.S. employees. This approximately represents the size of the matched sample used this month.

Small Business Highlights -- September 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: -14,000
  • Goods-producing sector: -20,000 small business jobs
  • Service-providing sector: +6,000 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 14,000 in September, 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.

"Small businesses, defined as those with fewer than 50 workers, saw employment decrease by 14,000 during September. Although small business employment declined for the first time in seven months, small business employment in the service-providing sector increased by 6,000, the ninth 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 email alerts and RSS feeds, please visit www.ADPemploymentreport.com. The October 2010 ADP National Employment Report will be released November 3, 2010 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 the twelve month period through June 2010, this subset averaged over 340,000 U.S. business clients and 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 nearly $9 billion in revenues and about 550,000 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 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 website 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, The ADP National Employment Report and ADP Small Business Report are registered trademarks of ADP, Inc.

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