ADP National Employment Report: Private Sector Employment Increased by 230,000 Jobs in October

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ADP National Employment Report: Private Sector Employment Increased by 230,000 Jobs in October
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Chart 1. Change in Total Nonfarm Private Employment Click here for high-resolution version

ROSELAND, NJ--(Marketwired - Nov 5, 2014) - Private sector employment increased by 230,000 jobs from September to October according to the October ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

October 2014 Report Highlights*

View the ADP National Employment Report Infographic at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 230,000 

  • By Company Size 
    • Small businesses: 102,000    
      • 1-19 employees 53,000 
      • 20-49 employees 49,000 

    • Medium businesses: 122,000 
      • 50-499 employees 122,000 

    • Large businesses: 5,000 
      • 500-999 employees 14,000 
      • 1,000+ employees -8,000

  • By Sector 
    • Goods-producing 48,000 
    • Service-providing 181,000 

  • Industry Snapshot
    • Construction 28,000 
    • Manufacturing 15,000 
    • Trade/transportation/utilities 47,000 
    • Financial activities 4,000 
    • Professional/business services 53,000

* Sum of components may not equal total, due to rounding.

Payrolls for businesses with 49 or fewer employees increased by 102,000 jobs in October, up from 93,000 in September. Job growth was up dramatically over the month for medium-sized firms. Employment among companies with 50-499 employees rose by 122,000, well over twice September's increase of 47,000. Employment at large companies -- those with 500 or more employees -- saw a big drop from 85,000 the previous month to only 5,000 jobs added in October. Companies with 500-999 employees added 14,000 jobs, up from September's 8,000. However, this increase was offset by the loss of 8,000 jobs by companies with over 1,000 employees.

Goods-producing employment rose by 48,000 jobs in October, down slightly from 50,000 jobs gained in September. The construction industry added 28,000 jobs over the month, above last month's gain of 13,000. Meanwhile, manufacturing added 15,000 jobs in October, down by over half from September's 33,000 which was the highest total in that sector since March 2011.

Service-providing employment rose by 181,000 jobs in October, up from 176,000 in September. The ADP National Employment Report indicates that professional/business services contributed 53,000 jobs in October. Expansion in trade/transportation/utilities grew by 47,000, up from September's 37,000. The 4,000 new jobs added in financial activities was less than half of last month's number. 

"Employment continues to trend upward as we begin the last quarter of 2014, driven mostly by small to mid-sized companies," said Carlos Rodriguez, president and chief executive officer of ADP. "October's job growth is the highest since June and the second highest gain of 2014."

Mark Zandi, chief economist of Moody's Analytics, said, "The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining. The job market will soon be tight enough to support a meaningful acceleration in wage growth."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201411/MOD-288469_Chart1.ChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201411/MOD-288470_Chart2.HistoricalTrendChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here: http://media.marketwire.com/attachments/201411/MOD-288471_Chart3.ChangeinNonfarmPrivateEmploymentbySelectedIndustry.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here: http://media.marketwire.com/attachments/201411/MOD-288472_Chart4.ChangeinNonfarmPrivateEmploymentbyCompanySize.jpg

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The September total of jobs added was revised from 213,000 to 225,000.

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 November 2014 ADP National Employment Report will be released at 8:15 a.m. ET on December 3, 2014.

About the ADP National Employment Report®
The ADP National Employment Report® is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP®, a leading provider of human capital management solutions. The report, which measures nearly 24 million U.S. workers, is produced by the ADP Research Institute®, a specialized group within the company that provides insights around employment trends and workforce strategy, in collaboration with Moody's Analytics, Inc.

Each month, ADP issues the ADP National Employment Report as part of the company's commitment to adding deeper insights into the U.S. labor market and providing businesses, governments and others with a source of credible and valuable information. The ADP National Employment Report is broadly distributed to the public each month, free of charge.

The data for this report 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 model used to create this report, please see "ADP National Employment Report: Development Methodology" at www.adpemploymentreport.com/docs/ADP-NER-Methodology-Full-Detail.pdf.

About Moody's Analytics
Moody's Analytics helps capital markets and risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services and research, including the proprietary analysis of Moody's Investors Service, Moody's Analytics integrates and customizes its offerings to address specific business challenges. Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue of $3.0 billion in 2013, employs approximately 8,400 people worldwide, and has a presence in 31 countries. More information is available at www.moodysanalytics.com.

About ADP
Employers around the world rely on ADP® (NASDAQ: ADP) for cloud-based solutions and services to help manage their most important asset -- their people. From human resources and payroll to talent management to benefits administration, ADP brings unmatched depth and expertise in helping clients build a better workforce. A pioneer in Human Capital Management (HCM) and business process outsourcing, ADP serves more than 610,000 clients in 100 countries. ADP.com.

The ADP logo, ADP, the ADP National Employment Report, the ADP Small Business Report and the ADP Research Institute are registered trademarks of ADP, LLC. All other marks are the property of their respective owners. Copyright © 2014 ADP, LLC.

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Contact:
Media
Dick Wolfe
ADP
(973) 974-7034
dick.wolfe@adp.com

Kate Rambo
Weber Shandwick for ADP
(617) 520-7048
krambo@webershandwick.com
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