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    ADP National Employment

    Automatic Data Processing, Inc.
    1 ADP Boulevard
    Roseland, NJ 07068
    973 974 5000

    The ADP National Employment Report, sponsored by ADP, was developed and is maintained by Macroeconomic Advisers, LLC. It is a measure of employment based on an anonymous subset of ADP payroll data covering approximately 225,000 establishments and 14 million employees working in all 19 of the major North American Industrial Classification (NAICS) private industrial sectors. The data is collected for pay periods that include the week of the 12th of each month, and processed with statistical methodologies similar to those used by the U.S. Bureau of Labour Statistics (the BLS) to compute employment from its monthly survey of establishments.

    For the period January 2001 December 2005, the simple correlation between the monthly percent change in the ADP National Employment Report and the monthly percent change in nonfarm private establishment employment is roughly 0.90. Empirical analysis performed by Macroeconomic Advisers suggests that the ADP National Employment Report is a better advance indicator of the monthly change in establishment employment than available consensus forecasts, and that it