SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

May 04, 2011 08:15 ET

U.S. Private-Sector Employment Increased by 179,000 Jobs in April, According to ADP National Employment Report

ROSELAND, NJ--(Marketwire - May 4, 2011) - Private-sector employment increased by 179,000 from March to April 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.

Nonfarm Private Employment Highlights -- April Report:

Total employment:+179,000
Small businesses:*+84,000
Medium businesses:**+84,000
Large businesses:***+11,000
Goods-producing sector:+41,000
Service-providing sector:+138,000
Addendum:
Manufacturing industry:+25,000
* 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 138,000 in April, marking 16 consecutive months of employment gains. Employment in the goods-producing sector rose 41,000, the sixth consecutive monthly gain. Manufacturing employment rose 25,000, the seventh consecutive monthly gain.

"Over the past several months, employers have continued to add jobs at a steady rate, which is consistent with ADP's own third-quarter fiscal year results," said Gary C. Butler, President and Chief Executive Officer of ADP. "On this fifth anniversary of the ADP National Employment Report, I am proud of the insights it continues to provide in understanding the nation's employment trends."

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Today's ADP National Employment Report shows that labor market conditions continued to improve in April, but only at a moderate pace. Employment in the nonfarm private-business sector rose 179,000 from March to April on a seasonally adjusted basis, which is close to consensus expectations both for today's report and for Friday's jobs number from the Bureau of Labor Statistics.

"While employment accelerated sharply around the turn of the year, the monthly gains have been holding fairly steady around 200,000 since then," Prakken added. "Employment growth at this pace is consistent with only modest declines in the unemployment rate."

Prakken added, "Manufacturing employment rose 25,000 in April, the seventh consecutive monthly gain, which is consistent with other data showing a strong recovery in the industrial sector of the economy."

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 -- April 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: +84,000
    • Goods-producing sector: +14,000 small business jobs
    • Service-providing sector: +70,000 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 among small businesses, defined as those with fewer than 50 workers, rose 84,000 in April," commented Prakken. "Employment gains in the small business service-providing sector have increased in each of the past 17 months," 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 May 2011 ADP National Employment Report will be released June 1, 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 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, ADP National Employment Report, and ADP Small Business Report are registered trademarks of ADP, Inc.

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