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ADP National Employment Report: Private Sector Employment Increased by 215,000 Jobs in December

Chart 1. Change in Total Nonfarm Private Employment Click here for high-resolution version

ROSELAND, NJ--(Marketwire - Jan 3, 2013) - Private sector employment increased by 215,000 jobs from November to December, according to the December ADP National Employment Report®, which is produced by Automatic Data Processing, Inc. (ADP®), a leading provider of human capital management 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. The November 2012 report, which reported job gains of 118,000, was revised upward by 30,000 to 148,000 jobs.

December 2012 Report Highlights*

Click here to view the ADP National Employment Report Infograph

Total U.S. Nonfarm Private Employment: 215,000

  • By Company Size 
    • Small businesses:  25,000
      • 1-19 employees -6,000
      • 20-49 employees 31,000

    • Medium businesses:  102,000
      • 50-499 employees 102,000

    • Large businesses:  87,000
      • 500-999 employees 26,000
      • 1,000+ employees 61,000

  • By Sector 
    • Goods producing 28,000
    • Service providing 187,000

  • Industry Snapshot
    • Construction 39,000
    • Manufacturing -11,000
    • Trade/transportation/utilities 53,000
    • Financial activities 14,000
    • Professional/business services 37,000

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

Goods-producing employment rose by 28,000 jobs in December as a large gain in construction jobs of 39,000 more than offset the 11,000 decline in manufacturing employment.

Service-providing jobs increased by 187,000. Among the service industries reported by the ADP National Employment Report, trade/transportation/utilities services had the largest gain with 53,000 jobs added over the month. Professional/business services added 37,000 jobs and financial activities added 14,000 jobs in December. 

Carlos A. Rodriguez, president and chief executive officer of ADP, said, "During the final month of 2012, U.S. private sector employment ended the year on a positive note as 215,000 jobs were added -- the ADP National Employment Report's largest monthly gain since February 2012. During the past year, the private sector added a total of more than 1.7 million jobs."

Mark Zandi, chief economist of Moody's Analytics, said, "The job market held firm in December despite the intensifying fiscal cliff negotiations in Washington. Businesses even became somewhat more aggressive in their hiring at year end. Most encouraging is the revival in construction jobs, although the December gain was likely lifted by rebuilding after Superstorm Sandy. The job market ended 2012 on a more solid footing."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201301/MOD-115444_chart1-changeintotal.jpg

To see Chart 2. Historical Trend - Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201301/MOD-115445_chart2-historicaltrend.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here: http://media.marketwire.com/attachments/201301/MOD-115446_chart3-changebyindustry.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here: http://media.marketwire.com/attachments/201301/MOD-115448_chart4-changebysize.jpg

Businesses with 49 or fewer employees added 25,000 jobs in December. Employment levels among medium-sized companies with 50-499 employees rose by 102,000, while employment at large companies -- those with 500 or more employees -- increased by 87,000.

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which, year to date represents 406,000 U.S. clients employing more than 23 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 in the ADP Small Business Report® each month. The ADP Small Business Report is a subset of the ADP National Employment Report.

December Small Business Highlights*

  • By Size:
    • 1-19 employees -6,000
    • 20-49 employees 31,000

  • By Sector for 1-49 Employees:
    • Goods producing 7,000
    • Service providing 18,000

  • By Sector for 1-19 Employees:
    • Goods producing 2,000
    • Service providing -8,000

  • By Sector for 20-49 Employees:
    • Goods producing 5,000
    • Service providing 26,000

* 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 http://www.adpemploymentreport.com/2012/December/SBS/SBS-NER-December-2012.aspx

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 January 2013 ADP National Employment Report will be released at 8:15 a.m. ET on January 30, 2013.

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 Automatic Data Processing, Inc. (ADP®), a leading provider of human capital management solutions. The report 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.

The ADP National Employment Report's measure of employment is derived from an anonymous subset of roughly 406,000 U.S. clients, which employ more than 23 million U.S. workers. 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 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 $2.3 billion in 2011, employs approximately 6,500 people worldwide and has a presence in 28 countries. Further information is available at www.moodysanalytics.com.

About ADP
Automatic Data Processing, Inc. ( NASDAQ : ADP ), with more than $10 billion in revenues and approximately 600,000 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.

The ADP logo, ADP, ADP National Employment Report, and ADP Small Business Report are registered trademarks of ADP, Inc. ADP Research Institute is a service mark of ADP, Inc. Copyright © 2013, ADP, Inc.