What is the ADP National Employment Report?

The ADP National Employment Report is a monthly report on the U.S. nonfarm private sector employment, published by the ADP Research Institute in collaboration with Moody's Analytics. The report is prepared by using actual transactional payroll data. It uses an anonymous subset of around 400,000 U.S based private companies working in the nonfarm sector.

Why is the ADP National Employment Report Important?

The ADP National Employment Report, commonly known as the ADP Jobs Report or ADP Employment Report, was originally conceptualized and maintained by Macroeconomic Advisers, LLC. Automatic Data Processing Inc. is preparing the report since 2006. Moody's Analytics is contracted by ADP for developing the report's methodology and the methodology was revised by Moody's Analytics in November 2012. ADP collects data from its client firms and prepares the report based on the payroll and benefits data. On the first Friday of each month, The Employment Situation Report is published by the Bureau of Statistics. The ADP National Employment Report is released two days prior to this report. It provides a primary idea about the nonfarm private sector's employment situation, before the more detailed and comprehensive government report. It helps investors and economists understand the market and analyze the situation. The report is divided into four parts, each part is a separate report. In the first report, the change in the number of private payrolls in the nonfarm sector is provided. This number is then categorized by the size of the business and industry. The second report provides the details of the small nonfarm businesses. The change in payroll is categorized by size (small and micro) and broad sector (manufacturing and service). The third report is focused on franchises and changes in employment are categorized by sector (like real estate, restaurant, accommodation, etc.). The fourth report categorizes the employment trends by region. It provides sector and industry-wise breakdown for six states: California, New York, New Jersey, Texas, Florida and Illinois and highlights the changes in these states.

Related Topics

• What is the US Labor Force?
• Out of the Labor Force
• Labor Force Participation Rate
• Establishment Payroll Survey
• Bureau of Labor Statistics 
• Unemployment 
• Underemployed
• Full Employment Equilibrium
• Okun's Law
•  Issues with Measuring Unemployment

• Sticky Wage Theory (Economics)
• Implicit Contract Theory of Wages
•  Efficient Wage Theory
• Adverse Selection of Wage Cuts Argument
• The Insider-Outsider Model
• Relative Wage Coordination Argument
• Natural Rate of Unemployment
• Frictional Unemployment
• Structural Unemployment
• Labor Productivity - Explained
• Okun's Law
• How does U.S. unemployment insurance work?
• National Average Wage Index
• Job Openings and Labor Turnover Survey
• Labor Surplus Area - Explained
• Lump of Labor Fallacy - Explained
• Bureau of Labor Statistics 
• ADP National Employment Survey
• Labor Theory of Value - Explained
• Wage Elasticity of Labor Supply