adp jobs report may 2011

8/6/2019 ADP Jobs Report May 2011

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Published on Wednesday, June 1, 2011, 8:15 A.M. ET

May 2011 ADP National Employment Report

Employment in the nonfarm private business sector rose 38,000 from April to May on aseasonally adjusted basis, according to the latestADP National Employment Reportreleasedtoday. The estimated change of employment from March 2011 to April 2011 was revised down

slightly to 177,000 from the previously reported increase of 179,000.

Todays ADP National Employment Report suggests that employment growth slowed sharply inMay. Employment in the nonfarm private-business sector rose 38,000 from April to May on aseasonally adjusted basis.

A deceleration in employment, while disappointing, is not entirely surprising. In the firstquarter, GDP grew at only a 1.8% rate and only about 2% over the last four quarters. This isbelow most economists estimate of the economys potential growth rate and normally would beassociated with very weak growth of employment.

MaysADP Reportestimates employment in the service-providing sector rose by 48,000,

marking 17 consecutive months of employment gains while employment in the goods-producingsector fell 10,000 following six months of increases. Manufacturing employment fell 9,000 inMay following seven consecutive monthly gains.

Employment among large businesses, defined as those with 500 or more workers, decreased by

19,000, while employment among medium-size businesses, defined as those with between 50and 499 workers, increased by 30,000. Employment for small businesses, defined as those withfewer than 50 workers, rose 27,000 in May.*

Employment in the construction industry dropped 8,000 in May, completely reversing Aprils

increase. The total decrease in construction employment since its peak in January 2007 is2,124,000.

Employment in the financial services sector decreased 6,000 in May.

For information on the construction sector and use of theADP Report, please visit the

methodology section of theADP National Employment Reportwebsite athttp://ADPemploymentreport.com/methodology.aspx .

* All size data included in the ADP National Employment Report is based on size of payroll. In some cases, small and medium-size payrollsbelong to businesses employing more workers than indicated by the size grouping.
http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://adpemploymentreport.com/methodology.aspxhttp://adpemploymentreport.com/methodology.aspxhttp://adpemploymentreport.com/methodology.aspxhttp://www.adpemploymentreport.com/


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DERIVED FROM ADP PAYROLL DATA

Table 1. Employees on nonfarm private payrolls by selected industry sector and size*

(In thousands)

Size of Payroll Seasonally Adjusted

Dec.

2010

Jan.

2011

Feb.

2011

Mar.

2011

Apr.

2011p

May

2011p

Change

from:

Apr.2011 -

May 2011p

Total nonfarm private 107,693 107,883 108,088 108,291 108,468 108,506 38

Small (1-49). 48,722 48,824 48,920 49,017 49,101 49,128 27

Medium (50-499). 41,552 41,634 41,734 41,819 41,902 41,932 30

Large (> 499).. 17,419 17,425 17,434 17,455 17,465 17,446 -19

Goods-producing. 17,688 17,718 17,738 17,776 17,812 17,802 -10

Small (1-49). 6,594 6,604 6,609 6,620 6,631 6,633 2

Medium (50-499). 7,666 7,683 7,703 7,724 7,751 7,758 7

Large (> 499).. 3,428 3,431 3,426 3,432 3,430 3,411 -19

Service-providing 90,005 90,165 90,350 90,515 90,656 90,704 48

Small (1-49). 42,128 42,220 42,311 42,397 42,470 42,495 25

Medium (50-499). 33,886 33,951 34,031 34,095 34,151 34,174 23

Large (> 499).. 13,991 13,994 14,008 14,023 14,035 14,035 0

Addendum:

Manufacturing 11,561 11,587 11,605 11,641 11,661 11,652 -9

p = preliminary; subject to revision* 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.

The matched sample used to develop theADP National Employment Reportwas derived fromADP 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 approximatelyrepresents the size of the matched sample used this month.


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Jan-01

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Jan-03

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Jan-07

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Jan-08

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Oc

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Jan-10

Ap

r-10

Ju

l-10

Oc

t-10

Jan-11

Ap

r-11

MonthlyPercentChange,

SeasonallyA

djusted

Source: Automatic Data Processing, Inc., Macroeconomic Advisers, LLC., Bureau of Labor Statistics

Chart 2. Growth of Private Nonfarm Employment, Goods -Producing Industries

Recession ADP Nationa l Employment Report BLS Cur rent Es timate

Simple Correlation = 0.95

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Jan-01

Apr-01

Jul-01

Oct-01

Jan-02

Apr-02

Jul-02

Oct-02

Jan-03

Apr-03

Jul-03

Oct-03

Jan-04

Apr-04

Jul-04

Oct-04

Jan-05

Apr-05

Jul-05

Oct-05

Jan-06

Apr-06

Jul-06

Oct-06

Jan-07

Apr-07

Jul-07

Oct-07

Jan-08

Apr-08

Jul-08

Oct-08

Jan-09

Apr-09

Jul-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

Apr-11


SeasonallyAdjusted

Source: Automatic Data Processing, Inc., Macroeconomic Advisers, LLC., Bureau of Labor Statistics

Chart 3. Growth of Private Nonfarm Employment, Service-Providing Industries

Rec es si on ADP Nati onal Emp loyment Report BLS Cur ren t Es ti mate

Simple Correlation = 0.92


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-2.2

-2.0

-1.8

-1.6

-1.4

-1.2

-1.0

-0.8

-0.6

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Jan-01

Apr-01

Jul-01

Oct-01

Jan-02

Apr-02

Jul-02

Oct-02

Jan-03

Apr-03

Jul-03

Oct-03

Jan-04

Apr-04

Jul-04

Oct-04

Jan-05

Apr-05

Jul-05

Oct-05

Jan-06

Apr-06

Jul-06

Oct-06

Jan-07

Apr-07

Jul-07

Oct-07

Jan-08

Apr-08

Jul-08

Oct-08

Jan-09

Apr-09

Jul-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11


SeasonallyAdjusted

Source: Automatic Data Processing, Inc., Macroeconomic Advisers, LLC.

Chart 4. Growth of Private Nonfarm Employment, by Size of Payroll*

Recession Small Medium Large

* All s ize data in cluded in the ADP National Employment Report is based on s ize of p ayroll. In some cases, small an d medium-size payrolls belong to businesses employing more workers than indicatedsize gro uping.

-140

-120

-100

-80

-60

-40

-20

0

20

40

60

80

Ju l.03 Jan .04 Ju l.04 Jan .05 Ju l.05 Jan .06 Ju l.06 Jan .07 Ju l.07 Jan .08 Jul.08 Jan.09 Ju l.09 Jan .10 Ju l.10 Jan

Thousands

Monthly Changes of Employment in Construction and Financial ActivitiesMay 2011

Construction

FinancialActivities

Source: Autom atic Data Processing, Inc., Macroeconomic Advisers, LLC


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About theADP National Employment ReportTheADP National Employment Report, sponsored by ADP, was developed and is maintained

by Macroeconomic Advisers, LLC. It is a measure of employment derived from an anonymoussubset 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. TheADP Small Business Report is amonthly estimate of private nonfarm employment among companies in the United States with 1-

49 employees and is a subset of theADP 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 eachmonth, and processed with statistical methodologies similar to those used by the U.S. Bureau ofLabor Statistics to compute employment from its monthly survey of establishments. Due to thisprocessing, this subset is modified to make it indicative of national employment leve ls; therefore,

the resulting employment changes computed for theADP National Employment Reportare notrepresentative of changes in ADPs total base of U.S. business clients.

For a description of the underlying data and the statistical properties of the series, please seeADP National Employment Report: Development Methodology at

http://ADPemploymentreport.com/methodology.aspx .

The June 2011ADP National Employment Reportwill be released July 7, 2011 at 8:15 AM ET.For a full schedule of future releases, please visit: www.ADPemploymentreport.com.

Media contacts: ADP Public Relations: 973-974-7612

Macroeconomic Advisers: 314-721-4747

Technical information: 314-721-4747

www.ADPemploymentreport.com

The ADP Logo, ADP, ADP National Employment Report, and ADP Small Business Report are

registered trademarks of ADP, Inc.
http://adpemploymentreport.com/methodology.aspxhttp://adpemploymentreport.com/methodology.aspxhttp://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://www.adpemploymentreport.com/http://adpemploymentreport.com/methodology.aspx

adp jobs report may 2011

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