What Is the ADP National Employment Report?

The ADP National Employment Report is a monthly report of economic data that tracks levels of nonfarm private employment in the U.S. It is also referred to as the ADP Jobs Report or the ADP Employment Report.

KEY TAKEAWAYS

The ADP National Employment Report is a monthly report of economic data that tracks levels of nonfarm private employment in the U.S.

Automatic Data Processing Inc., the firm that has prepared the report since 2006, handles payroll for about one-fifth of all privately-employed individuals in the U.S.

The ADP National Employment Report is viewed as a useful preview to the more detailed Bureau of Labor Statistics' employment situation report.

The ADP National Employment Report is divided into four separate releases.

Understanding the ADP National Employment Report

If you're not self-employed or a government employee, there is a decent chance that your pay statement is processed by Automatic Data Processing Inc. (ADP). The firm handles payroll for about a fifth of U.S. private employment, putting it in a unique position to survey trends in the nation’s labor market.

ADP collects data through the payroll services and benefits administration it provides to companies. It issues reports on its findings through a partnership with Moody’s Analytics.

The ADP National Employment Report is released two days prior to the Bureau of Labor Statistics' employment situation report, which is available on the first Friday of each month. Investors and economists see the ADP report as a preview of the more detailed and comprehensive government data release.

Details of the ADP National Employment Report

The methodology of the ADP National Employment Report is managed by Moody’s Analytics. The report is divided into four separate releases, using figures that are seasonally adjusted. Each report provides the following information:

1) A national snapshot showing the change in the number of nonfarm private payrolls, which also breaks that change down by the size of the business and industry.

2) Small businesses: Breaks the change in payrolls down by size (small and very small) and broad sector (goods-providing or services-providing).

3) Franchises: Breaks changes in employment in that sector down by industry, such as restaurants, accommodations, and real estate.

4) Regional assessment of employment trends, highlighting changes in six states (California, New York, New Jersey, Texas, Florida, and Illinois), for which it provides sector and industry breakdowns.