SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

August 01, 2012 08:15 ET

U.S. Private-Sector Employment Increased by 163,000 Jobs in July, According to ADP National Employment Report

ROSELAND, NJ--(Marketwire - Aug 1, 2012) -  Private-sector employment increased by 163,000 from June to July 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. The estimated gain from May to June was revised down slightly, from the initial estimate of 176,000 to 172,000.

 U.S. Nonfarm Private Employment Highlights -- July 2012 Report: 
 •   Total employment: +163,000
 •   Small businesses:* +73,000
 •   Medium businesses:** +67,000
 •   Large businesses:*** +23,000
 •   Goods-producing sector: +15,000
 •   Service-providing sector: +148,000
 •   Manufacturing industry: + 6,000
 * 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 163,000 from June to July on a seasonally adjusted basis. Employment in the private, service-providing sector expanded 148,000 in July after rising a revised 151,000 in June. Employment in the private, goods-producing sector added 15,000 jobs in July, while manufacturing employment rose 6,000, following a revised increase of 9,000 in June. Construction employment rose for the second consecutive month, adding 5,000 jobs. The financial services sector added 9,000 jobs from June to July, marking the twelfth consecutive monthly gain.

Carlos A. Rodriguez, president and chief executive officer of ADP, said: "According to this month's ADP National Employment Report, the U.S. economy added 163,000 jobs in July. This increase marks two-and-half years of positive job growth. According to our data, businesses across the country have restored nearly 4 million jobs during this period with an average of 131,000 new positions a month. Although encouraging, we'd like to see continued growth but at more robust and consistent levels."

According to Joel Prakken, chairman of Macroeconomic Advisers, LLC, "July's increase was the thirtieth consecutive monthly advance, and higher than the consensus forecast for today's release and for the official jobs number due out Friday from The Bureau of Labor Statistics. Although recent employment gains likely have been restrained by heightened uncertainty over the European financial crisis and by growing concerns about domestic fiscal policy, July's increase of 163,000 new jobs reinforces that the pace of hiring has picked back up after slowing sharply during the Spring."

Prakken added: "This gain in private employment is strong enough to suggest that the national unemployment rate may have declined in July. Today's estimate from ADP, if re-enforced by a similar reading on employment from the BLS on Friday, will alleviate concerns that the economy has slipped into a downturn." 

Employment levels among medium-sized payrolls -- those with 50 to 499 workers -- rose by 67,000, while employment on large payrolls -- those with 500 or more workers -- increased by 23,000 jobs in July.

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.

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.* 

Employment on small payrolls -- those with up to 49 workers -- rose 73,000 in July. 

  • Total nonfarm private small business employment: 73,000 jobs created
    • Goods-producing sector gained 4,000 jobs
    • Service-providing sector added 69,000 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.

Additional information about small business employment, including charts on monthly job growth and employment levels, along with historical data, is available at

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

The August 2012 ADP National Employment Report will be released at 8:15 AM ET on Thursday, September 6, 2012. 

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

About ADP
Automatic Data Processing, Inc. (NASDAQ: ADP), with more than $10 billion in revenues and approximately 600,000 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 website at

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,

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

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