Forex Glossary

ADP National Employment Report

The ADP National Employment Report is a widely recognized economic indicator that provides insights into the current state of the U.S. labor market. It is published monthly by the ADP Research Institute in collaboration with Moody’s Analytics.

The ADP National Employment Report is based on actual payroll data from approximately 400,000 U.S. businesses, representing various industries and company sizes. It measures the change in non-farm private employment, excluding government jobs, and provides an estimate of the number of jobs added or lost during the reporting period.

Key features of the ADP National Employment Report include:

  1. Employment Change: The report indicates the net change in private sector employment for the given month, indicating whether the labor market has expanded or contracted.
  2. Industry Breakdown: It provides a breakdown of employment changes across different sectors of the economy, such as manufacturing, construction, professional services, and healthcare. This helps to identify which industries are experiencing significant shifts in employment.
  3. Business Size Analysis: The report analyzes employment changes based on the size of businesses, distinguishing between small, medium, and large companies. This offers insights into how job growth or contraction is distributed among different business segments.

The ADP National Employment Report is considered a leading indicator of the widely followed U.S. Bureau of Labor Statistics (BLS) non-farm payroll report, which provides a comprehensive assessment of employment trends in both the private and public sectors. The ADP report is released a few days before the BLS report, making it an influential preview of the overall employment situation in the United States.

Market participants, economists, policymakers, and analysts closely monitor the ADP National Employment Report as it offers an early indication of labor market trends. It provides valuable information for assessing the health of the U.S. economy, forecasting job growth or decline, and adjusting investment or business strategies accordingly.

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