Thursday, September 6, 2012

U.S. Private-Sector Employment Increased By 201,000 Jobs in August, According to ADP National Employment Report

ADP Press Release

ROSELAND, N.J. – September 6, 2012 – Private-sector employment increased by 201,000 from July to August on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The ADP National Employment Report, created byAutomatic Data Processing, Inc. (ADP®), in partnership with Macroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month. The estimated gain from June to July was revised up from the initial estimate of 163,000 to 173,000.

U.S. Nonfarm Private Employment Highlights – August 2012 Report:
• Total employment:+201,000
• Small businesses:*+99,000
• Medium businesses:**+86,000
• Large businesses:***+16,000
• Goods-producing sector:+16,000
• Service-providing sector:+185,000
• Manufacturing industry:+3 ,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
Note: All data included in the ADP National Employment Report is based on size of payroll. In some cases, small and medium-size payrolls belong to businesses employing more workers than indicated by the size grouping.
According to today’s ADP National Employment Report, employment in the nonfarm private business sector rose 201,000 from July to August on a seasonally adjusted basis.  Employment in the private, service-providing sector expanded 185,000 in August, up from 156,000 in July.  Employment in the private, goods-producing sector added 16,000 jobs in August, while manufacturing employment rose 3,000, following an increase of 6,000 in July.  Construction employment rose for the third consecutive month, adding 10,000 jobs, marking the best reading since March.  The financial services sector added 8,000 jobs from July to August, marking the thirteenth consecutive monthly gain.
Carlos A. Rodriguez, president and chief executive officer of ADP, said: “According to this month’s ADP National Employment Report, the U.S. economy added 201,000 jobs in August, the largest increase in five months.  The improvement in job creation this month is encouraging and we hope it continues across all sectors of the U.S. economy.”
According to Joel Prakken, chairman of Macroeconomic Advisers, LLC, “The August increase of 201,000, following a solid gain in July, supports the notion that the underlying trend in hiring has picked back up after slowing sharply during the spring. The August increase was well above the consensus forecast for today’s release and for the official jobs number due out Friday from The Bureau of Labor Statistics.”
Prakken added: “The gain in private employment in August is strong enough to suggest that the national unemployment rate may have declined.  Today’s estimate, if matched by a similar reading on employment from the BLS on Friday, will alleviate concerns that the economy has slipped into a downturn.” 
Employment levels among medium-sized payrolls—those with 50 to 499 workers—rose by 86,000, while employment on large payrolls—those with 500 or more workers—increased by 16,000 jobs in August.

The matched sample used to develop the ADP National Employment Report was derived from ADP data, which, during 2011, averaged about 344,000 U.S. business clients and represented over 21 million U.S. employees.  This approximately represents the size of the matched sample used this month.
Small Business Highlights – August Report:
Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees is reported in the ADP Small Business Report® each month.  The ADP Small Business Report is a subset of the ADP National Employment Report.*
Employment on small payrolls—those with up to 49 workers—rose 99,000 in August.
  • Total nonfarm private small business employment: 99,000 jobs created
    • Goods-producing sector gained 7,000 jobs
    • Service-providing sector added 92,000 jobs
Additional information about small business employment, including charts on monthly job growth and employment levels, along with historical data, is available at

O'Zone Editorial Comments:

The nation needs about 125,000 new jobs a month to accommodate population growth and new people entering the workforce.

ADP President and CEO Carlos Rodriguez noted that the August jobs represent the largest increase in five months.

In a separate report, outsourcing firm Challenger Gray & Christmas said that U.S. companies announced 32,239 layoffs in August, the fewest cuts since December 2010.

In another report, the Institute for Supply Management reported today that its services index jumped to 53.7 last month from 52 on the back of a rebound in employment and exports.That beat economists' forecasts for a 52.5 reading.

A reading above 50 indicates expansion in the sector.


  1. it's good to see some positive numbers in this area.

  2. Hi,
    Great blog.Growth picked up in the U.S. service sector with steady strength in private-sector hiring. Government job employment data is not bad, but not compelling.But in future hiring will remained robust . Thanks for this informative post.


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