SOURCE: Automatic Data Processing, Inc.

Automatic Data Processing, Inc.

December 01, 2010 08:15 ET

U.S. Private Sector Employment Increased by 93,000 Jobs in November, According to ADP National Employment Report

ROSELAND, NJ--(Marketwire - December 1, 2010) -  Private-sector employment increased by 93,000 from October to November 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 -- November Report:
     
Total employment: +93,000
     
Small businesses* +54,000
Medium businesses** +37,000
Large businesses*** +2,000
     
Goods-producing sector: +14,000
     
Service-providing sector: +79,000
     
Addendum:
Manufacturing industry: +16,000
 
* 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 79,000 in November, the tenth consecutive monthly gain. Employment in the goods-producing sector rose by 14,000, the first monthly increase since March 2007. Construction employment dropped by 3,000 during November, the smallest decline since June 2007, and manufacturing employment increased by 16,000.

"Although most segments of the U.S. private sector have experienced some positive job growth recently, the unemployment rate has remained stagnant for around eighteen months," said Gary C. Butler, President and Chief Executive Officer of ADP. "Most businesses still have little reason to add to their payrolls due to the ongoing uncertainty in the economy. To support job creation, our nation's policymakers should do their part to create an environment of reasonable economic certainty by clearly defining key tax and regulatory policies. Reduced economic uncertainty, along with appropriate near term incentives for businesses to invest and expand, will encourage businesses to hire."

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "This month's ADP National Employment Report shows an acceleration of employment and suggests the nation's employment situation is brightening somewhat. November's gain in private-sector employment is the largest in three years. This is the tenth consecutive month of gains, which have averaged 47,000 during that period. Nevertheless, employment gains of this magnitude are not sufficient to lower the unemployment rate, which likely will remain above 9% for all of 2011. Furthermore, given modest GDP growth in the second and third quarters, and the usual lag of employment behind GDP, it would not be surprising to see several more months of only moderate gains in employment even as the economic recovery gathers momentum."

"Large businesses, defined as those with 500 or more workers, increased by 2,000 while employment among medium-size businesses, defined as those with between 50 and 499 workers, increased by 37,000. Employment among small-size businesses, defined as those with fewer than 50 workers, increased by 54,000," 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 -- November 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: +54,000
  • Goods-producing sector: +5,000 small business jobs
  • Service-providing sector: +49,000 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 increased by 54,000 in November, 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, increased by 54,000 during November. Small business employment has now increased for nine consecutive months, and this month's increase is the largest since December 2007," 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 December 2010 ADP National Employment Report will be released January 5, 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, The ADP National Employment Report and ADP Small Business Report are registered trademarks of ADP, Inc.

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