ADP
What is the ADP Employment Report?
The ADP Employment Report is the employment statistics released by a private enterprise, Automatic Data Processing (ADP), which provides payroll processing services in the United States.
This article will explain the content, methodology for observation, trend of results analysis, and frequently asked questions in detail for the ADP Employment Report. The overview of the ADP Employment Report is as follows.
Date and Time of Release
The ADP Employment Report is released two business days before the release of BLS Monthly Employment Situation by the U.S. Bureau of Labor Statistics (BLS), which is released on the first Friday of every month.
| U.S. Time | Japan Time | China/Hong Kong/Taiwan Time | Singapore Time | Australia Time |
|---|---|---|---|---|
| 08:15 AM | 10:15 PM | 09:15 PM | 09:15 PM | 11:15 PM |
During Daylight saving time in the United States
| U.S. Time | Japan Time | China/Hong Kong/Taiwan Time | Singapore Time | Australia Time |
|---|---|---|---|---|
| 08:15 AM | 09:15 PM | 08:15 PM | 08:15 PM | 10:15 PM |
Content
The ADP Employment Report is an Employment Report produced by the payroll processing service company, Automatic Data Processing (ADP), based on the statistics of payroll data from over 25 million employees across approximately 500,000 companies in the U.S. From August 2022, the Stanford Digital Economy Lab has joined the statistical work of this report.
Differences Between ADP Employment Report and United States Nonfarm Payrolls
The United States Nonfarm Payrolls is the result of a survey performed by a government agency, and the ADP Employment Report is the result of the survey performed by a private company.
The main differences between the abovementioned information are the sample group and statistical methodology.
Nonfarm Payrolls issued by BLS are based on the data obtained by household and business surveys across the U.S.
On the other hand, ADP Employment Report is based on the statistical analysis of the data obtained from ADP’s clients.
How to view the ADP Employment Report
Detailed information on the ADP Employment Report is available on the website of ADP® Employment Report.
The detailed data is available in categories of “National”, “Establishment Size,” “Industry,” and “Region”, which can be reviewed in the News Release.
Users can switch between tabs to view results by Establishment Size, Industry, etc.
Industry
Establishment Size
Region
Data can be downloaded in XLS or .CSV formats.
With access to detailed data, users are able to grasp information like “which industries show employment growth” or “whether employment in small and medium-sized enterprises has increased.”
Frequently Asked Questions about the ADP Employment Report
Some of the frequently asked questions about the ADP Employment Report are as follows.
What impact does the ADP Employment Report have on the FX market?
The Federal Reserve (FRB) has the dual mandate of “Price Stability” and “Maximum Sustainable Employment.”
Therefore, ADP Employment Report as an employment indicator may influence expectations on Fed monetary policy, which in turn may affect the U.S. bond market, stock market, and foreign exchange markets.
IS the ADP Employment Report meaningless?
The ADP Employment Report is released two business days before the BLS Monthly Employment Situation, thus it grabs more market attention. However, due to differences in sample group and statistical methods, the results of ADP Employment Report and BLS Monthly Employment Situation may be different.
As a result, the estimation for employment which only relies on ADP Employment Report may not be very accurate.
However, the ADP Employment Report is still important as a complementary employment indicator.
Summary: A Detailed Explanation of the ADP Employment Report
The ADP Employment Report is an Employment Report produced by the payroll processing service company, Automatic Data Processing (ADP), based on the statistics of payroll data from over 25 million employees across approximately 500,000 companies in the U.S. It is released two business days before the BLS Monthly Employment Situation.
The results of ADP Employment Report may influence expectations on FRB monetary policy, which in turn may significantly affect the U.S. bond market, stock market, and foreign exchange markets.
However, please note that due to differences in sample group and statistical methods from the BLS Monthly Employment Situation, there can be discrepancies between the two information sources.