Published on Wednesday, March 7, 2012, 8:15 AM ET

February 2012 ADP National Employment Report®

Employment in the U.S. nonfarm private business sector increased by 216,000 from January to

February on a seasonally adjusted basis. The estimated advance in employment from December to January was revised slightly upwards to 173,000 from the initially reported 170,000.

Employment in the private, service-providing sector rose 170,000 in February, and employment in the private, goods-producing sector increased 46,000 in February. Manufacturing

employment increased 21,000.

Employment on large payrolls—those with 500 or more workers—increased 20,000, and employment on medium payrolls—those with 50 to 499 workers—rose 88,000 in February. Employment on small payrolls—those with up to 49 workers—rose 108,000 that same period.

Of the 108,000 jobs created by small businesses, 18,000 jobs were created by the goods-producing sector and 90,000 jobs were created by the service-producing sector.

Employment in the construction industry grew by 16,000 in February, marking the fifth consecutive monthly gain in this sector. Employment in the financial services sector increased

14,000 in February, marking the seventh consecutive and largest monthly gain over the last two years.

For information on the construction sector and use of the ADP Report, please visit the methodology section of the ADP National Employment Report website at

http://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 payrolls

belong to businesses employing more workers than indicated by the size grouping.

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.

DERIVED FROM ADP PAYROLL DATA

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

(In thousands)

Sep.

2011

Oct.

2011

Nov.

2011

Dec.

2011

Jan.

2012p

Feb.

2012p

Change

from:

Jan.2012 -

Feb.2012p

Total nonfarm private……………109,225 109,367 109,593 109,860 110,033 110,249 216

Small (1-49)……………. 48,991 49,059 49,174 49,297 49,390 49,498 108

Medium (50-499)………. 42,344 42,412 42,505 42,622 42,698 42,786 88

Large (> 499)………….. 17,890 17,896 17,914 17,941 17,945 17,965 20

Goods-producing………….. 18,004 18,013 18,038 18,080 18,104 18,150 46

Small (1-49)……………. 6,615 6,619 6,633 6,649 6,659 6,677 18

Medium (50-499)………. 7,863 7,875 7,889 7,912 7,925 7,948 23

Large (> 499)………….. 3,526 3,519 3,516 3,519 3,520 3,525 5

Service-providing…………… 91,221 91,354 91,555 91,780 91,929 92,099 170

Small (1-49)……………. 42,376 42,440 42,541 42,648 42,731 42,821 90

Medium (50-499)………. 34,481 34,537 34,616 34,710 34,773 34,838 65

Large (> 499)………….. 14,364 14,377 14,398 14,422 14,425 14,440 15

Addendum:

Manufacturing……………… 11,701 11,700 11,703 11,719 11,735 11,756 21

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.

Seasonally Adjusted

Industry / Size of Payroll

Notice of Annual Revisions to the ADP National Employment Report®

Automatic Data Processing, Inc., in conjunction with Macroeconomic Advisers, LLC, has published the

scheduled annual revisions to the estimates of employment shown in the ADP National Employment Report.

Revisions include:

Updated regression estimates used to adjust for historical d ifferences in the variances of the monthly

growth rates of employment reported by the Bureau of Labor Statistics and computed from the ADP

data.

Updated estimates of the differences in the historical averages of the growth rates of employment

reported by the Bureau of Labor Statistics and computed from the ADP data.

Updated estimates of historical seasonal factors.

The reference month for establishing the levels of employment shown in the ADP National Employment

Report advanced from March of 2010 to March of 2011.

Note: These revisions are published in accordance with the previously stated schedule of annual benchmark

revisions to the ADP Report. No revisions have been made to the methodology of computing the estimates of

employment shown in the ADP National Employment Report. Visit www.adpemploymentreport.com for

details.

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

Chart 1. Growth of Private Nonfarm Employment, Goods-Producing Industries

Recession ADP National Employment Report BLS Current Estimate

Simple Correlation = 0.95

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

Chart 2. Growth of Private Nonfarm Employment, Service-Providing Industries

Recession ADP National Employment Report BLS Current Estimate

Simple Correlation = 0.92

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

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

Chart 3. Growth of Private Nonfarm Employment, by Size of Payroll*

Recession Small Medium Large

* 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.

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Chart 4. Monthly Changes of Employment in Construction and Financial ActivitiesFebruary 2012

Construction

Financial

Activities

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

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 co mpute

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.

The March 2012 ADP National Employment Report will be released April 4, 2012, 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.