SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

August 03, 2011 08:40 ET

U.S. Private-Sector Employment Increased by 114,000 Jobs in July, According to ADP National Employment Report

ROSELAND, NJ--(Marketwire - Aug 3, 2011) - Private-sector employment increased by 114,000 from June to July 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 advance in employment from May to June was revised down modestly to 145,000, from the initially reported 157,000.

U.S. Nonfarm Private Employment Highlights - July, 2011 Report:
Total employment: +114,000
Small businesses:* + 58,000
Medium businesses:** + 47,000
Large businesses:*** + 9,000
Goods-producing sector: -7,000
Service-providing sector: +121,000
Addendum:
Manufacturing industry: -1,000
* 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 121,000 in July, marking 19 consecutive months of employment gains. Employment in the goods-producing sector decreased by 7,000 in July, the second decline in three months. Manufacturing employment decreased 1,000 in July, which has seen growth in seven of the past nine months.

"Today's report shows modest job creation for the month of July at a rate of half what is needed for meaningful employment and economic recovery," said Gary C. Butler, Chief Executive Officer of ADP. "Construction lost 11,000 jobs this month, and manufacturing and financial services were nearly flat with losses of 1,000 each.

"However," continued Butler, "the professional business services, education and healthcare sectors had good growth. Another bright note is that small businesses showed positive job growth for the 20th straight month, averaging 69,000 jobs a month for the past year."

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Today's ADP National Employment Report suggests that employment continued to advance at a moderate pace in July. This gain of employment growth is moderately above the consensus forecast for Friday's jobs number from the BLS, and this pace of job creation usually implies a steady unemployment rate. However, employment is decelerating. Since February, the three-month percent change has declined every month, from 0.60% then to 0.27% in July."

"The slowdown in employment makes more sense in light of last week's revised GDP numbers showing the economy grew slower late last year and this year than initially reported," Prakken said.

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 - July 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.*

  • Total nonfarm private small business employment: 58,000
    • Goods-producing sector: -3,000 small business jobs
    • Service-providing sector: 61,000 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.

"Employment on small payrolls (up to 49 workers) rose 58,000 in July, while employment on medium payrolls (50 to 499 workers) rose 47,000. Employment on large payrolls (500 or more workers) rose a smaller 9,000," Prakken added.

Additional information about small businesses 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 August 2011 ADP National Employment Report will be released August 31, 2011, 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 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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