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Analysis of April's Report

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Wednesday, May 2, 2007, 8:15 am EDT

Private nonfarm employment grew 64,000 from March to April of 2007 on a seasonally adjusted basis, according to the ADP National Employment Report.^®

This month's ADP National Employment Report suggests monthly gains of employment in the private nonfarm business sector averaged a moderate 76,000 over the last three months, as estimated by the ADP National Employment Report.

Continuing recent trends, employment grew 106,000 in the service-providing sectors of the economy, but fell 42,000 in the goods-producing sectors, which includes a decline of 20,000 in the manufacturing sector. Also, the overall gain in employment in April was driven by employment gains of 45,000 at small firms and 29,000 at medium-sized firms. Employment at large firms contracted 10,000, the fourth consecutive monthly decline.

For information on the construction and use of the ADP Report, please visit the methodology section of the ADP National Employment Report website at http://ADPemploymentreport.com/methodology.aspx.

DERIVED FROM ADP PAYROLL DATA Table 1. Employees on nonfarm private payrolls by selected industry sector and size (In thousands)
Industry/Size of Payroll	Seasonally Adjusted
Industry/Size of Payroll	Nov. 2006	Dec. 2006	Jan. 2006	Feb. 2007	Mar. 2006	Apr. 2007p	Change from: Mar. 2007 - Apr. 2007p
Total nonfarm private....	114,815	114,933	115,054	115,119	115,217	115,281	64

Small (1-49)................	50,203	50,299	50,373	50,425	50,500	50,545	45
Medium (50-499)........	45,166	45,191	45,243	45,276	45,314	45,343	29
Large (> 499).............	19,446	19,443	19,438	19,418	19,403	19,393	-10

Goods-producing...........	22,491	22,473	22,457	22,416	22,390	22,348	-42

Small (1-49)................	8,102	8,115	8,121	8,117	8,120	8,110	-10
Medium (50-499)........	9,943	9,926	9,917	9,901	9,883	9,865	-18
Large (> 499).............	4,446	4,432	4,419	4,398	4,387	4,373	-14

Service-providing.........	92,324	92,460	92,597	92,703	92,827	92,933	106

Small (1-49)................	42,101	42,184	42,252	42,308	42,380	42,435	55
Medium (50-499)........	35,223	35,265	35,325	35,375	35,431	35,478	47
Large (> 499).............	15,000	15,011	15,019	15,020	15,016	15,020	4

Addendum:
Manufacturing...................	14,117	14,095	14,072	14,044	14,028	14,008	-20
p = preliminary The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the last six months of 2006, averaged 364,000 payrolls representing 22 million U.S. employees. This approximately represents the size of the matched sample used this month.

About the ADP National Employment Report ^®

The ADP National Employment Report, sponsored by ADP®, was developed and is maintained by Macroeconomic Advisers, LLC. It is a measure of employment derived from an anonymous subset of roughly 500,000 U.S. business clients. During the last six months of 2006, this subset represented approximately 364,000 U.S. business clients and approximately 22 million U.S. employees working in all private industrial sectors. The data is collected for pay periods that can be interpolated to include the week of the 12^th of each month, and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics to compute employment from its monthly survey of establishments. Due to this processing, this subset is modified to make it indicative of national employment levels; therefore, the resulting employment changes computed for the ADP National Employment Report are not representative of changes in ADP's total base of U.S. business clients.

Empirical analysis performed by Macroeconomic Advisers suggests that the ADP National Employment Report can be used to develop a forecast of "true" employment that is superior to those resulting from consensus estimates, survey data, or other models of employment that do not incorporate the results of the ADP Report.

For a description of the underlying data and the statistical properties of the series, please see "ADP National Employment Report: Development Methodology" at http://ADPemploymentreport.com/methodology.aspx.

For a full schedule of future releases, please visit: www.ADPemploymentreport.com

Media contacts: ADP Public Relations: 973-974-7612
Macroeconomic Advisers: 314-721-4747

Technical information: 314-721-4747
www.ADPemploymentreport.com

The ADP National Employment Report is a trademark and service mark of ADP of North America, Inc.

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