DEFINITION of 'ADP National Employment Report'

The ADP National Employment Report is a monthly economic data release tracking levels of nonfarm private employment in the U.S.

BREAKING DOWN 'ADP National Employment Report'

The report is released two days prior to the Bureau of Labor Statistics' employment situation report, which becomes available on the first Friday of each month. Investors and economists see the ADP report as a preview of the more detailed and comprehensive government data release.

Automatic Data Processing Inc., the firm that has prepared the report since 2006, collects its data through the payroll services and benefits administration it provides to companies representing about a fifth of U.S. private employment. ADP contracted Moody's Analytics to develop the report's methodology.

The release is divided into four separate reports. The first is a national snapshot showing the change in the number of nonfarm private payrolls and breaking that change down by the size of the business and industry. The second focuses on small businesses, breaking the change in payrolls down by size (small and very small) and broad sector (goods-providing or services-providing). The third focuses on franchises and breaks changes in employment in that sector down by industry, such as restaurants, accommodations and real estate. The fourth breaks employment trends down by region and highlights changes in six states (California, New York, New Jersey, Texas, Florida and Illinois), for which it provides sector and industry breakdowns.

ADP's figures are seasonally adjusted.

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