ADP National Employment Report Shows U.S. Employment Increased by 40,000 Private Sector Jobs in May
ROSELAND, New Jersey (June 04, 2008) – According to today’s ADP National Employment Report (SM), private sector employment increased by 40,000 in May. 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.
Private Employment Highlights — May Report:
* Total employment: +40,000
* Small businesses* +61,000
* Medium businesses** -3,000
* Large businesses*** -18,000
* Goods-producing sector: -37,000
* Service-providing sector: +77,000
Addendum:
* Manufacturing industry: -26,000
* 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 increased 40,000 from April to May 2008 on a seasonally adjusted basis, according to the ADP National Employment Report. The estimated change in employment from March to April was revised up from an increase of 10,000 to an increase of 13,000.”
“Though May’s estimate for a moderate increase in employment is above consensus forecasts of an outright decline, it nevertheless suggests continued weakness in employment.”
Prakken added, “Employment in the service-providing sector of the economy grew 77,000, while employment in the goods-producing sector declined 37,000, the eighteenth consecutive monthly decline. Manufacturing employment fell 26,000 in May and marked the twenty-first consecutive monthly decline.”
“Large businesses, defined as those with 500 or more workers, saw employment decline 18,000, while medium-size companies with between 50 and 499 workers declined by 3,000. Conversely, employment among small-size businesses, defined as those with fewer than 50 workers, advanced 61,000 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. In May, construction employment dropped 13,000. This was the eighteenth consecutive monthly decline, and brings the total decline in construction jobs since the peak in August of 2006 to 298,000. However, May’s decline was the smallest since January. In addition, employment in financial activities advanced 5,000 during May, the third consecutive monthly gain.”
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 — May 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: +61,000
* Goods-producing sector: -1,000 small business jobs
* Service-providing sector: +62,000 small business jobs
Private employment among small businesses increased by 61,000 in May, 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 61,000 during May, up from a revised 43,000 increase in April. This moderate growth of employment among small-size businesses contrasts with employment declines among larger firms and is consistent with the stronger growth and resiliency these 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 June 2008 ADP National Employment Report will be released on Wednesday, July 2, 2008 at 8:15 a.m. ET.
Source: ADP
