ADP Employment Data
ADP employment data is an economic data indicator released by the American human resource management company Automatic Data Processing, Inc. (ADP), which is used to measure the changes in non-farm employment in the private sector in the United States. This data is usually released before the U.S. Department of Labor publishes the non-farm employment report at the beginning of each month, and is therefore considered an important indicator for predicting non-farm employment data.
Definition: The ADP Employment Report is an economic indicator released by Automatic Data Processing, Inc. (ADP), a human resources management company in the United States. It measures changes in non-farm private sector employment in the U.S. This data is typically released before the U.S. Department of Labor's monthly non-farm payroll report, making it an important predictor of the non-farm payroll data.
Origin: The ADP Employment Report was first released in 2006 to provide a more timely measure of the labor market conditions. Given ADP's extensive business in payroll processing and human resources management, its data is considered highly representative and accurate.
Categories and Characteristics: The ADP Employment Report is mainly divided into the following categories:
- Total Employment Change: This is the most commonly cited indicator, reflecting the overall change in private sector employment.
- Industry-Specific Data: ADP also provides employment data by industry, such as manufacturing and services, to help analyze employment trends in different sectors.
- Company Size Data: Employment data is provided based on company size (small, medium, large enterprises), helping to understand employment changes across different scales of businesses.
Specific Cases:
- Case 1: During the early stages of the COVID-19 pandemic in 2020, the ADP Employment Report showed a significant decline in private sector employment, foreshadowing the negative data in the upcoming non-farm payroll report. This helped investors and policymakers take preemptive measures.
- Case 2: In a particular month, the ADP Employment Report indicated an increase in manufacturing employment while showing a decrease in service sector employment. This data helped analysts better understand the recovery situation in different economic sectors and adjust their investment strategies.
Common Questions:
- How does the ADP Employment Report differ from the non-farm payroll data? The ADP Employment Report covers only the private sector, while the non-farm payroll data includes government employment.
- Why do the ADP Employment Report and non-farm payroll data sometimes differ? Due to differences in data sources and calculation methods, the ADP Employment Report and non-farm payroll data may vary, but their overall trends are usually consistent.
