ADP National Employment Report Shows U.S. Added 40,000 Private Sector Jobs in December
ROSELAND, New Jersey (January 03, 2008) – According to today’s ADP National Employment Report(SM), private sector employment increased by 40,000 in December. 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.
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Nonfarm Private Employment Highlights — December Report:
— Total employment: +40,000
— Small businesses* +66,000
— Medium businesses** +9,000
— Large businesses*** -35,000
— Goods-producing sector: -31,000
— Service-providing sector: +71,000
Addendum:
— Manufacturing industry: -16,000
* 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
During 2007, the ADP National Employment Report clearly showed that service-providing businesses, particularly those with fewer than 500 employees, led the year’s employment growth by adding well over one million new jobs. In contrast, businesses in the goods-producing sector showed consistent declines throughout the year, losing nearly four-hundred thousand jobs,” said Gary Butler, President and CEO, ADP. “The ADP Report is derived from a large sample size of actual payroll data, enabling us to identify and report upon a number of trends regarding today’s labor market. In light of the current market conditions, financial and business communities are looking for more, credible data about the true employment situation in the United States.”
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, “Nonfarm private employment grew 40,000 from November to December of 2007 on a seasonally adjusted basis, according to the ADP National Employment Report. December’s increase of 40,000 marked a slowing of nonfarm private employment growth that averaged 118,000 during the three-month period from September through November.”
Prakken added, “Employment in the service-providing sector of the economy grew 71,000, while employment in the goods-producing sector declined 31,000, the thirteenth consecutive monthly decline. Manufacturing employment experienced its eighteenth consecutive monthly decline, falling 16,000.”
“Small- and medium-size businesses more than accounted for the increase in total employment in December, adding 75,000 jobs. In contrast, employment among larger companies declined 35,000, more than reversing the sizable gains reported among these businesses in November,” 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 data suggest that in these two crucial sectors employment is still falling. In December, construction employment fell 17,000. This is the thirteenth consecutive monthly decline, bringing the total decline in construction jobs since the peak in August 2006 to 199,000. Employment in financial activities fell 5,000, which is the third decline during the last five months.”
The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the last six months of 2007, averaged approximately 392,000 payrolls representing nearly 24 million U.S. employees. This approximately represents the size of the matched sample used this month.
Small Business Highlights — December 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: +66,000
— Goods-producing sector: +2,000 small business jobs
— Service-providing sector: +64,000 small business jobs
Private employment among small businesses increased by 66,000 in December, according to the ADP Small Business Report released today.
“Small businesses more than accounted for the increase in total employment in December, adding 66,000 jobs,” said Joel Prakken. “Throughout the year, small businesses have been the main driver of employment growth, adding a total 716,000 jobs during 2007. In eleven of the past twelve months, small businesses added more jobs than medium- and large-size businesses combined.”
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.
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 January 2008 ADP National Employment Report will be released on Wednesday, January 30, 2008 at 8:15 a.m. ET.
Source: ADP
