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Overview and Methodology
The ADP National Employment ReportSM
Overview of Methodology & Methodological Enhancements
February 22, 2007
Prepared by 
Overview
Publication of the Employment Situation by the U.S. Bureau of Labor Statistics (the BLS) is the first - and generally the most important - release of government-sponsored economic data every month. Employment is an intrinsically important statistic. Furthermore, financial markets react, sometimes strongly, to "surprises" in the BLS' estimates of establishment employment that might signal future changes in monetary policy. Hence, information that helps analysts anticipate monthly changes in employment is valuable.
Automatic Data Processing, Inc. (ADP) is the nation’s premier provider of payroll-related services. Currently, ADP processes over 500,000 payrolls, for approximately 430,000 separate business entities, covering over 24 million employees, in all major industries and states. While doing so, every month ADP collects a wealth of information related to payroll employment well before publication of the Employment Situation.
ADP has contracted with Macroeconomic Advisers, LLC to create and maintain from this rich, timely dataset new estimates of nonfarm private employment published in the ADP National Employment Report. These are constructed from ADP’s data on payrolls following a procedure similar to that used by the BLS to process its monthly survey of Current Employment Statistics into the “official” estimates of establishment employment. The ADP National Employment Report is released, for public use only, two days prior to the Employment Situation.
Click here for complete detail of the methodology used to develop the ADP National Employment Report.
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