Following is the text of the June private payrolls report from ADP Employer Services.
Private-sector employment increased by 176,000 from May to June on a seasonally adjusted basis, according to the latest ADP National Employment Report released today. The ADP National Employment Report, created by Automatic 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 April to May was revised up slightly, from the initial estimate of 133,000 to a revised estimate of 136,000.
U.S. Nonfarm Private Employment Highlights - June 2012 Report:
Total employment: +176,000
Small businesses:* +93,000
Medium businesses:** +72,000
Large businesses:*** +11,000
Goods-producing sector: +16,000
Service-providing sector: +160,000 Addendum:
Manufacturing industry: + 4,000 * 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 176,000 from May to June on a seasonally adjusted basis. Employment in the private, service-providing sector rose 160,000 in June, after rising a revised 137,000 in May. Employment in the private, goods-producing sector added 16,000 jobs in June, while manufacturing employment added 4,000, reversing May’ s decline. Construction employment rose by 8,000 jobs, more than reversing the declines of the two previous months. The financial services sector added 11,000 jobs from May to June.
“According to the ADP National Employment Report, the economy added 176,000 jobs in June, the majority of which came from the services-providing sector,” said Carlos A. Rodriguez, president and chief executive officer of ADP. “In spite of lingering fiscal uncertainties, it is encouraging to see companies creating jobs, particularly in the goods-producing sector where we see positive growth following two months of job loss.” Rodriguez added: “Since January of this year, our National Employment Report shows UNDER EMBARGO UNTIL: Thursday, July 5, 2012 8:15 AM (ET) that, on average, businesses have added 173,000 jobs a month. We hope this growth continues at even a healthier rate across all sectors of the economy.”
According to Joel Prakken, chairman of Macroeconomic Advisers, LLC, “The gain in private employment is strong enough to suggest that the national unemployment rate may have declined in June. Today‟s estimate, if reinforced by a comparable reading on employment from the Bureau of Labor Statistics tomorrow, likely will ease concerns that the economy is heading into a downturn.
Prakken added: “There seems little doubt that recent employment gains have been restrained by heightened uncertainty over the European financial crisis and by growing concerns about domestic fiscal policy. However, the acceleration of employment since April does lend credence to the argument that unseasonably warm weather boosted employment during the winter months, with a „payback‟ spread over April and May.”
Employment levels among medium-sized payrolls--those with 50 to 499 workers-- rose by 72,000, while employment on large payrolls--those with 500 or more workers-- increased by 11,000 jobs in June.
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 - June 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 93,000 in June.
Total nonfarm private small business employment: 93,000 jobs created
Goods-producing sector gained 9,000 jobs
Service-providing sector added 84,000 jobs * All size 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.
Additional information about small business employment, including charts on monthly job growth and employment levels, along with historical data, is available at http://www.smallbusinessreport.adp.com.
To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.ADPemploymentreport.com.
The July 2012 ADP National Employment Report will be released August 1, 2012 at 8:15 AM ET.
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 2011, this subset averaged about 344,000 U.S. business clients and represented over 21 million U.S. employees working in all private industrial sectors. The ADP Small Business Report is a monthly estimate of private nonfarm employment among companies in the United States with 1-49 employees and is a subset of the ADP National Employment Report. The data for both reports is collected for pay periods that can be interpolated to include the week of the 12th 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.
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.
About ADP Automatic Data Processing, Inc. (NASDAQ: ADP), with about $10 billion in revenues and approximately 570,000 clients, is one of the world’s largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP’s easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company’s website at www.ADP.com.
SOURCE: ADP/ Macroeconomic Advisers http://www.adpemploymentreport.com