ADP National Employment Report Shows U.S. Employment Decreased by 79,000 Private Sector Jobs in June
ROSELAND, New Jersey (July 02, 2008) – According to today’s ADP National Employment Report®, private sector employment decreased by 79,000 in June. The ADP National Employment Report, created by ADP® Employer Services, a division of Automatic Data Processing, Inc. (ADP), in partnership with Macroeconomic Advisers, LLC, is based on actual payroll data and measures the change in total nonfarm private employment each month.
Nonfarm Private Employment Highlights – June Report:
* Total employment: -79,000
* Small businesses* +7,000
* Medium businesses** -35,000
* Large businesses*** -51,000
* Goods-producing sector: -76,000
* Service-providing sector: -3,000
Addendum:
— Manufacturing industry: -44,000
* Small businesses represent payrolls with 1-49 employees
* Medium businesses represent payrolls with 50-499 employees
* Large businesses represent payrolls with more than 499 employees
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, “Nonfarm private employment decreased 79,000 from May to June 2008 on a seasonally adjusted basis, according to the ADP National Employment Report. The estimated change in employment from April to May was revised down from an increase of 40,000 to an increase of 25,000.
“This month’s decrease in employment was broad-based across industrial sectors and suggests continued weakness in employment.”
Prakken added, “Employment in the service-providing sector of the economy declined 3,000, the first decline since November 2002. Employment in the goods-producing sector declined 76,000, with manufacturing employment falling 44,000, marking their nineteenth and twenty-second consecutive monthly declines, respectively.
“Large businesses, defined as those with 500 or more workers, saw employment decline 51,000, while medium-size companies with between 50 and 499 workers declined by 35,000. Employment among small-size businesses, defined as those with fewer than 50 workers, advanced just 7,000 during the month,” said Prakken.
Prakken went on to say, “Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending. Today’s report suggests no lessening of the recent strain on employment in these industries. In June, construction employment dropped 34,000. This was the nineteenth consecutive monthly decline, and brings the total decline in construction jobs since the peak in August of 2006 to 349,000. In addition, employment in financial activities declined 3,000 during the month.”
The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the first six months of 2008, averaged approximately 399,000 payrolls representing nearly 24 million U.S. employees. This approximately represents the size of the matched sample used this month.
Small Business Highlights – June Report:
Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees will be reported in the ADP Small Business Report(SM) each month. The ADP Small Business Report is a subset of the ADP National Employment Report.
* Total small business employment: +7,000
* Goods-producing sector: -27,000 small business jobs
* Service-providing sector: +34,000 small business jobs
Private employment among small businesses increased by 7,000 in June, according to the ADP Small Business Report released today. Additional information about small business employment, including charts on monthly job growth and employment levels, along with historical data, is available at http://www.smallbusinessreport.adp.com.
“Employment among small-size businesses, defined as those with fewer than 50 workers, advanced just 7,000 during June, the weakest monthly increase since November 2002. Nevertheless, this month’s weaker employment growth among small-size businesses still contrasts with growing employment declines among larger firms, and is consistent with the comparative resiliency small-size businesses have demonstrated over the past several years,” said Joel Prakken.
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 e-mail alerts and RSS feeds, please visit www.ADPemploymentreport.com. The July 2008 ADP National Employment Report will be released on Wednesday, July 30, 2008 at 8:15 a.m. ET.
Source: ADP
