What is ADP Jobs Report?
1427 reads · Last updated: December 5, 2024
The ADP Employment Report is a monthly employment report published by the American human resources management company ADP (Automatic Data Processing). Based on the employment data of a large number of companies managed by ADP, the report provides an estimate of non-farm employment in the US private sector. The ADP Employment Report is usually released before the monthly non-farm employment report from the US Department of Labor and is considered an important economic indicator that can provide predictions and trend analysis of the US labor market.
Definition
The ADP Employment Report is a monthly employment report released by the American human resources management company ADP (Automatic Data Processing). This report provides an estimate of non-farm employment in the U.S. private sector based on employment data from a large number of companies managed by ADP. The ADP Employment Report is typically released before the U.S. Department of Labor's monthly non-farm payroll report and is considered an important economic indicator, offering forecasts and trend analysis of the U.S. labor market.
Origin
The ADP Employment Report was first released in 2006 to provide investors and economists with an early preview of the employment market. Due to its basis on actual data from numerous companies, the ADP report quickly became a crucial tool for predicting trends in the U.S. labor market.
Categories and Features
The ADP Employment Report primarily focuses on non-farm employment data in the private sector, excluding government employment. Its features include being based on actual payroll processing data, providing relatively accurate estimates of employment changes. The report's advantages lie in its timeliness and broad data coverage, but it may differ from the official non-farm payroll report due to the exclusion of government employment.
Case Studies
For instance, in March 2020, the ADP Employment Report showed a decrease of 27,000 jobs in the U.S. private sector, providing crucial forward guidance for the upcoming official non-farm payroll report. Similarly, in June 2021, the ADP report indicated strong job growth with an addition of 692,000 positions, reflecting the momentum of economic recovery.
Common Issues
Investors often misunderstand the differences between the ADP report and the official non-farm payroll report. The ADP report does not include government employment, which can lead to discrepancies between the two datasets. Additionally, revisions to ADP data can result in differences from the initial report.
