Global| Mar 30 2016U.S. ADP Reports Hiring Growth Remains Steady
by:Tom Moeller
|in:Economy in Brief
Summary
The ADP/Moody's National Employment Report indicated that nonfarm private sector payrolls rose 200,000 (2.1% y/y) during March following a 205,000 February increase, revised from 214,000. The latest gain was firmer than expectations [...]
The ADP/Moody's National Employment Report indicated that nonfarm private sector payrolls rose 200,000 (2.1% y/y) during March following a 205,000 February increase, revised from 214,000. The latest gain was firmer than expectations for a 185,000 rise in the Action Economics Forecast Survey. During the last ten years, there has been a 96% correlation between the change in the ADP figure and the change in nonfarm private sector payrolls as measured by the Bureau of Labor Statistics.
The ADP Research Institute survey is based on ADP's business payroll transaction system covering 411,000 companies and nearly 24 million employees. The data are processed by Moody's Analytics Inc., then calibrated and aligned with the BLS establishment survey data. The ADP data cover private sector employment, not government.
Small businesses led last month's job growth with an 86,000 rise (2.1% y/y) following a 68,000 increase. Medium-sized businesses added 75,000 workers (1.9% y/y) after a 60,000 rise. Large business payrolls improved 39,000 (2.3% y/y), the weakest gain since October.
Service industry hiring increased 191,000 (2.4% y/y), about the same monthly rate as during the last year. Payrolls in trade, transportation & utilities industries improved 42,000 (1.7% y/y), the strongest rise in nine months. The number of professional & business services increased a weakened 28,000 (2.8% y/y). The number of financial activities jobs rose 14,000 (1.9% y/y) after an 8,000 increase.
The pace of hiring in the goods-producing sector of the economy remained soft at 9,000 (0.6% y/y). Construction sector employment increased a firm 17,000 (3.7% y/y). Factory sector jobs improved 3,000 (0.1% y/y), but on balance fell through the quarter.
The ADP National Employment Report data are maintained in Haver's USECON database; historical figures date back to April 2001 for the total and industry breakdown, and back to January 2005 for the business size breakout. The expectation figure is available in Haver's AS1REPNA database.
| ADP/Moody's National Employment Report | Mar | Feb | Jan | Mar Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Nonfarm Private Payroll Employment (m/m chg, 000s) | 200 | 205 | 193 | 2.1% | 2.3% | 2.2% | 1.9% |
| Small Payroll (1-49) | 86 | 68 | 77 | 2.1 | 2.6 | 2.1 | 1.9 |
| Medium Payroll (50-499) | 75 | 60 | 73 | 1.9 | 2.3 | 2.8 | 2.2 |
| Large Payroll (>500) | 39 | 77 | 43 | 2.3 | 1.7 | 1.6 | 1.5 |
| Goods-Producing | 9 | 2 | 15 | 0.6 | 1.8 | 2.4 | 1.8 |
| Construction | 17 | 24 | 23 | 3.7 | 4.5 | 4.7 | 3.7 |
| Manufacturing | 3 | -9 | 2 | 0.1 | 1.1 | 1.3 | 0.8 |
| Service-Producing | 191 | 204 | 178 | 2.4 | 2.4 | 2.2 | 1.9 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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