ADP National Employment Report: Private Sector Employment Increased by 175,000 Jobs in January

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ADP National Employment Report: Private Sector Employment Increased by 175,000 Jobs in January
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Chart 1. Change in Total Nonfarm Private Employment Click here for high-resolution version

ROSELAND, NJ--(Marketwired - Feb 5, 2014) - Private sector employment increased by 175,000 jobs from December to January according to the January 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.

January 2014 Report Highlights*

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

Total U.S. Nonfarm Private Employment: 175,000

  • By Company Size 
    • Small businesses:   75,000 
      • 1-19 employees 42,000
      • 20-49 employees 33,000

    • Medium businesses:  66,000
      • 50-499 employees 66,000

    • Large businesses:  34,000
      • 500-999 employees 4,000
      • 1,000+ employees 31,000

  • By Sector 
    • Goods-producing 16,000
    • Service-providing 160,000

  • Industry Snapshot
    • Construction 25,000
    • Manufacturing -12,000
    • Trade/transportation/utilities 30,000
    • Financial activities 0
    • Professional/business services 49,000

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

Goods-producing employment rose by 16,000 jobs in January, down from a downwardly-revised figure of 50,000 in December. Nearly all of the growth came from the construction industry which added 25,000 jobs over the month; this followed increases of 30,000 and 32,000 in the prior two months. Manufacturing lost jobs in January; the decline of 12,000 followed a revised gain of 16,000 in the prior month and was the first decline in industry payrolls since July 2013. 

Service-providing industries added 160,000 jobs in January, down from an upwardly-revised December figure of 177,000. The ADP National Employment Report indicates that professional/business services contributed the most to growth in service-providing industries, adding 49,000 jobs. This was well below the average gain of the prior two months of 65,000. Expansion in trade/transportation/utilities slowed to a gain of 30,000 jobs in January. Financial activities employment was flat over the month, following two consecutive months of gains of 6,000 apiece.

"The U.S. private sector added 175,000 jobs in January, which is in line with the average monthly growth throughout 2013," said Carlos Rodriguez, president and chief executive officer of ADP.

Mark Zandi, chief economist of Moody's Analytics, said, "Cold and stormy winter weather continued to weigh on the job numbers. Underlying job growth, abstracting from the weather, remains sturdy. Gains are broad based across industries and company sizes, the biggest exception being manufacturing, which shed jobs, but that is not expected to continue."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201402/MOD-221757_Chart1.ChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201402/MOD-221758_Chart2.HistoricalTrendChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here: http://media.marketwire.com/attachments/201402/MOD-221759_Chart3.ChangeinNonfarmPrivateEmploymentbySelectedIndustry.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here: http://media.marketwire.com/attachments/201402/MOD-221760_Chart4.ChangeinNonfarmPrivateEmploymentbyCompanySize.jpg

Payroll growth for businesses with 49 or fewer employees decelerated in January, adding 75,000 jobs. This is the slowest pace of small business job growth since August 2013. Employment levels among medium-sized companies with 50-499 employees rose by 66,000 and employment at large companies -- those with 500 or more employees -- increased by 34,000. While this represented an acceleration in job growth for mid-size firms, growth at large firms was nearly half of what it was in December. 

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.

ADP Small Business Report®:
Due to the important contribution that small businesses make to economic growth, employment data that are specific to businesses with 49 or fewer employees is reported each month in the ADP Small Business Report®, a subset of the ADP National Employment Report.

January 2014 Small Business Report Highlights*

Total Small Business Employment: 75,000

  • By size:
    • 1-19 employees 42,000
    • 20-49 employees 33,000

  • By sector for 1-49 employees:
    • Goods producing 11,000
    • Service providing 64,000

  • By sector for 1-19 employees:
    • Goods producing 6,000
    • Service providing 37,000

  • By sector for 20-49 employees:
    • Goods producing 5,000
    • Service providing 27,000

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

Additional information about small business employment, including charts on monthly job growth and employment levels along with historical data, is available at www.adpemploymentreport.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 February 2014 ADP National Employment Report will be released at 8:15 a.m. ET on March 5, 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 ADP Small Business Report is a monthly estimate of private nonfarm employment among companies in the U.S. 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 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 proprietary analyses from 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 $2.7 billion in 2012, employs approximately 6,800 people worldwide and has a presence in 28 countries. Further information is available at www.moodysanalytics.com.

About ADP
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and Human Capital Management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). 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, visit the company's Web site at www.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, Inc. All other marks are the property of their respective owners. Copyright © 2014 ADP, Inc.

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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