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NATIONAL EMPLOYMENT

Reading the ADP National Employment Report®

The ADP Research Institute®, working in close collaboration with Moody’s Analytics and its experienced team of labor market researchers, has enhanced the monthly ADP National Employment Report® to more closely align with the final, revised U.S. Bureau of Labor Statistics (BLS) job numbers.

The New Methodology

Beginning with its November 1, 2012 report, the ADP National Employment Report’s new methodology now utilizes ADP payroll data, U.S. BLS employment data, and the Philadelphia Federal Reserve Bank’s Aruoba-Diebold-Scotti Business Conditions Index. The new methodology includes a larger sample size of ADP clients (up from 344,000 U.S. companies to 406,000), a larger population of employees (up from 21 million employees to 23 million, which accounts for more than 20 percent of all U.S. private sector employees), five company-size classes and and five industries (both increased from three, respectively). This larger data set is expected to help enable the ADP National Employment Report to more closely match the final, revised job numbers published by the BLS.

Data Security and Release Procedures

ADP utilizes various layers of data protection in the development of the ADP National Employment Report®. In order to help guarantee that the monthly ADP National Employment Report and data used in its preparation are not compromised by unauthorized access or pre-release of any information: (i) Access to relevant data is limited to those with a clear need to know (supported by physical and computer security procedures); (ii) All persons with access are strictly prohibited from using pre-release information for personal gain and from providing pre-release information to the media or other unauthorized individuals; (iii) All persons with access to the ADP National Employment Report in advance of release are subject to a thorough background check; (iv) ADP associates are bound by ADP ethics and information security policies and all outside individuals given access to the data are required to sign formal pledges regarding the foregoing and (v) The ADP National Employment Report is released on a schedule that helps minimize the risk of pre-release access and helps ensure simultaneous release to all of the public. Certain aspects of the foregoing procedures are modeled after those used by the United States Department of Commerce, Economics and Statistics Administration and the United States Bureau of Labor Statistics. No confidential client data is used in the ADP National Employment Report. The aggregated regional and industry data used in the report means that no information on individual ADP clients can be identified.

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