ADP Employment Number
ADP employment refers to the employment data report of the private sector in the United States published by ADP company. It is an important reference indicator before the release of non-farm employment data in the United States. The report will include employment situation in the private sector of the United States, including manufacturing, service, construction, etc., and has a certain predictive effect on non-farm employment data.
Definition: The ADP Employment Report is a monthly report released by Automatic Data Processing, Inc. (ADP) that measures the change in private sector employment in the United States. It serves as an important indicator ahead of the official Non-Farm Payrolls (NFP) data. The report includes employment data from various sectors such as manufacturing, services, and construction, providing insights into the overall employment situation in the private sector.
Origin: The ADP Employment Report was first introduced in 2006 by ADP, a global leader in human capital management solutions founded in 1949. The report was created to offer a more timely measure of employment conditions in the U.S. labor market.
Categories and Characteristics: The ADP Employment Report is divided into several categories:
- Manufacturing Employment: Reflects employment changes in the manufacturing sector.
- Services Employment: Covers employment in the service industry.
- Construction Employment: Tracks employment data in the construction sector.
Case Studies:
- In July 2023, the ADP report showed that the U.S. private sector added 324,000 jobs, exceeding the expected 195,000. This positive data led to increased optimism about the upcoming Non-Farm Payrolls report, causing a rise in the stock market.
- In December 2022, the ADP report indicated that the private sector added only 125,000 jobs, significantly below the expected 200,000. This data raised concerns about an economic slowdown, resulting in a decline in the stock market.
Common Questions:
- What is the difference between ADP Employment and Non-Farm Payrolls? The ADP Employment Report only includes private sector employment, while the Non-Farm Payrolls data also includes government employment.
- Why is the ADP Employment Report an important indicator for Non-Farm Payrolls? Since the ADP report is released before the Non-Farm Payrolls data and uses a similar methodology, it serves as a valuable reference for predicting the official employment figures.
