ADP National Employment Report: Private Sector Employment Increased by 176,000 Jobs in August

ADP National Employment Report: Private Sector Employment Increased by 176,000 Jobs in August

ROSELAND, N.J. – September 5, 2013 Private sector employment increased by 176,000 jobs from July to August, according to the August ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis. July’s job gain was revised down slightly from 200,000 to 198,000.  

August 2013 Report Highlights*

View the ADP National Employment Report Infograph at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment:
 176,000



 • By Company Size 
 
   • Small businesses: 
71,000
    · 1-19 employees 
40,000
    · 20-49 employees 
31,000



   • Medium businesses: 
74,000
    · 50-499 employees  
74,000



   • Large businesses: 
32,000
    · 500-999 employees 
5,000
    · 1,000+ employees 
27,000
 
 
   • By Sector
 
    • Goods producing
11,000
    • Service providing   
165,000
 
 
   • Industry Snapshot
 
    • Construction 
4,000
    • Manufacturing  
5,000
    • Trade/transportation/utilities 
40,000
    • Financial activities
1,000
    • Professional/business services
50,000

* Sum of components may not equal total, due to rounding.

Goods-producing employment rose by 11,000 jobs in August, at roughly half the growth rate of the previous month. Construction payrolls added 4,000 jobs, while manufacturing payrolls increased by 5,000, rebounding from a decline in July.

Service-providing industries added 165,000 jobs in August, down from 176,000 in July. Gains were broad-based across industries. Among the service industries reported by the ADP National Employment Report, professional/business services added the most jobs with 50,000 over the month. Trade/transportation/utilities services saw an increase of 40,000 jobs, while financial activities showed a modest gain of 1,000 jobs, the category’s smallest monthly increase since June of 2012.

"The U.S. private sector added 176,000 jobs in August, as companies of all sizes expanded their payrolls over the previous month," said Carlos A. Rodriguez, president and chief executive officer of ADP.  “The August job gains are in line with the monthly average over the last 12 months.”

Mark Zandi, chief economist of Moody’s Analytics, said, "It is steady as she goes in the job market. Job gains in August were consistent with increases experienced over the past two-plus years. There is little evidence that fiscal austerity and Health Care Reform have had a significant impact on the job market.”

Chart 1: Change in Total Nonfarm Private Employment
Chart 1: Change in Total Nonfarm Private Employment

Chart 2: Historical Trend - Change in Total Nonfarm Private EmploymentChart 2: Historical Trend - Change in Total Nonfarm Private Employment

Chart 3: Change in Nonfarm Private Employment by Selected IndustryChart 3: Change in Nonfarm Private Employment by Selected Industry

Chart 4: Change in Nonfarm Private Employment by Company SizeChart 4: Change in Nonfarm Private Employment by Company Size

Businesses with 49 or fewer employees added 71,000 jobs in August. Employment levels among medium-sized companies with 50-499 employees rose by 74,000, while employment at large companies – those with 500 or more employees – increased by 32,000.

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 416,000 U.S. clients employing nearly 24 million workers in the U.S.

ADP Small Business Report®:
Due to the important contribution that small businesses make to economic growth, employment data that are specific to businesses with 49 or fewer employees is reported each month in the ADP Small Business Report®, a subset of the ADP National Employment Report.

August 2013 Small Business Report Highlights*

Total Small Business Employment:   71,000
 • By size: 
 
    · 1-19 employees
40,000
    · 20-49 employees
31,000
 
 
   • By sector for 1 - 49 employees:
 
    · Goods producing
1,000
    · Service providing 
69,000



   • By sector for 1 - 19 employees:
 
    · Goods producing
- 2,000
    · Service providing 
42,000
 
 
   • By sector for 20 - 49 employees:
 
    · Goods producing
3,000
    · Service providing 
28,000

* Sum of components may not equal total, due to rounding.

Additional information about small business employment, including charts on monthly job growth and employment levels along with historical data, is available at www.adpemploymentreport.com.

To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.adpemploymentreport.com.

The September 2013 ADP National Employment Report will be released at 8:15 a.m. ET on October 2, 2013.

About the ADP National Employment Report®
The ADP National Employment Report® is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP®, a leading provider of human capital management solutions. The report, which measures nearly 24 million U.S. workers, is produced by the ADP Research Institute®, a specialized group within the company that provides insights around employment trends and workforce strategy, in collaboration with Moody’s Analytics, Inc.

Each month, ADP issues the ADP National Employment Report as part of the company’s commitment to adding deeper insights into the U.S. labor market and providing businesses, governments and others with a source of credible and valuable information.  The ADP National Employment Report is broadly distributed to the public each month, free of charge.

The ADP Small Business Report is a monthly estimate of private nonfarm employment among companies in the U.S. 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 compute 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 model used to create this report, please see “ADP National Employment Report: Development Methodology” at www.adpemploymentreport.com/docs/ADP-NER-Methodology-Full-Detail.pdf.

About Moody’s Analytics
Moody’s Analytics helps capital markets and risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services and research, including proprietary analyses from Moody’s Investors Service, Moody’s Analytics integrates and customizes its offerings to address specific business challenges. Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue of $2.7 billion in 2012, employs approximately 6,800 people worldwide and has a presence in 28 countries. Further information is available at www.moodysanalytics.com.

About ADP
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries.  As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA).  ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes.  ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.  For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.

The ADP logo, ADP, the ADP National Employment Report, the ADP Small Business Report and the ADP Research Institute are registered trademarks of ADP, Inc.  The ADP Regional Employment Report and ADP National Franchise Report are service marks of ADP, Inc.  All other marks are the property of their respective owners. Copyright © 2013 ADP, Inc.

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