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ADP National Employment Report: Private Sector Employment Increased by 749,000 Jobs in September

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According to the ADP National Employment Report, private sector employment rose by 749,000 jobs from August to September 2020. The increase reflects a continued recovery in the labor market with small businesses contributing 192,000 jobs, medium businesses adding 259,000 jobs, and large businesses accounting for 297,000 jobs. The goods-producing sector saw an increase of 196,000 jobs, while the service-providing sector added 552,000 jobs. The report is produced by the ADP Research Institute in collaboration with Moody's Analytics.

Positive
  • Private sector employment increased by 749,000 jobs in September.
  • Small businesses added 192,000 jobs.
  • Medium businesses contributed 259,000 jobs.
  • Large businesses created 297,000 jobs.
  • Goods-producing sector increased jobs by 196,000.
  • Service-providing sector saw an increase of 552,000 jobs.
Negative
  • Small businesses demonstrated slower growth compared to larger companies.

ROSELAND, N.J., Sept. 30, 2020 /PRNewswire/ -- Private sector employment increased by 749,000 jobs from August to September according to the September ADP National Employment Report®.  Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® 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.

Chart 1. Change in Total Nonfarm Private Employment

September 2020 Report Highlights*

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

Total U.S. Nonfarm Private Employment:     749,000

By Company Size

- Small businesses:     192,000

  • 1-19 employees     121,000
  • 20-49 employees     71,000

- Medium businesses:     259,000

  • 50-499 employees     259,000

- Large businesses:     297,000

  • 500-999 employees     75,000
  • 1,000+ employees     222,000

By Sector

- Goods-producing:     196,000

  • Natural resources/mining     7,000
  • Construction     60,000
  • Manufacturing     130,000

- Service-providing:     552,000

  • Trade/transportation/utilities     186,000
  • Information     17,000
  • Financial activities     29,000
  • Professional/business services     78,000
         - Professional/technical services     26,000
         - Management of companies/enterprises     5,000
         - Administrative/support services     47,000
  • Education/health services     90,000
         - Health care/social assistance     101,000
         - Education     -11,000
  • Leisure/hospitality     92,000
  • Other services     60,000

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

- Franchise Employment**

  • Franchise jobs      20,700

**Complete details on franchise employment can be found here.

"The labor market continues to recover gradually," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.  "In September, the majority of sectors and company sizes experienced gains with trade, transportation and utilities; and manufacturing leading the way. However, small businesses continued to demonstrate slower growth."

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 U.S. clients employing nearly 26 million workers in the U.S. The August total of jobs added was revised from 428,000 to 481,000.  

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 October 2020 ADP National Employment Report will be released at 8:15 a.m. ET on November 4, 2020.

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 26 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 Research Institute 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 data for this report 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 the ADP National Employment Report: Development Methodology.

About the ADP Research Institute

The mission of the ADP Research Institute is to generate data-driven discoveries about the world of work, and to derive reliable economic indicators from these insights. We offer these findings to the world at large as our unique contribution to making the world of work better and more productive, and to bring greater awareness to the economy at large.

About Moody's Analytics

Moody's Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs.

About ADP (NASDAQ – ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential.  HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people.   Learn more at ADP.com

ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, ADP Small Business Report, ADP National Franchise Report, and ADP Research Institute are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.

Copyright © 2020 ADP, Inc. All rights reserved.

ADP-Media

 

Chart 2. Historical Trend - Change in Total Nonfarm Private Employment

 

Chart 3. Change in Nonfarm Private Employment by Industry

 

Chart 4. Change in Nonfarm Private Employment by Company Size

 

(PRNewsfoto/ADP, LLC)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-749-000-jobs-in-september-301141870.html

SOURCE ADP, Inc.

FAQ

What does the September 2020 ADP National Employment Report indicate about job growth?

The report indicates that private sector employment increased by 749,000 jobs from August to September 2020.

How many jobs did small businesses add according to the ADP report for September 2020?

Small businesses added 192,000 jobs in September 2020.

What sectors contributed to the job growth reported by ADP in September 2020?

The goods-producing sector added 196,000 jobs, while the service-providing sector contributed 552,000 jobs.

When will the next ADP National Employment Report be released?

The next report will be released on November 4, 2020, at 8:15 a.m. ET.

What is the role of the ADP Research Institute in the employment report?

The ADP Research Institute produces the report in collaboration with Moody's Analytics, using actual payroll data.

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