ADP National Employment Report: Private Sector Employment Increased by 365,000 Jobs in October

Rhea-AI Summary

According to the October ADP National Employment Report, private sector employment saw an increase of 365,000 jobs from September to October 2020. This report, generated from actual payroll data of ADP's clients, shows employment gains across all business sizes and sectors. Small businesses added 114,000 jobs, medium businesses 135,000, and large businesses 116,000. Service-providing sectors led the growth with 348,000 jobs added, while goods-producing sectors contributed 17,000 jobs. The report highlights ongoing job recovery in a challenging economic environment.

Positive

• Private sector employment increased by 365,000 jobs in October.
• Job gains occurred across all industries and business sizes.
• Small businesses added 114,000 jobs; medium businesses added 135,000 jobs.
• Significant growth in service-providing sectors with 348,000 jobs added.

Negative

• None.

ROSELAND, N.J., Nov. 4, 2020 /PRNewswire/ -- Private sector employment increased by 365,000 jobs from September to October according to the October 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.

October 2020 Report Highlights*

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

Total U.S. Nonfarm Private Employment:     365,000

By Company Size

- Small businesses:     114,000

• 1-19 employees     63,000
• 20-49 employees     51,000

- Medium businesses:     135,000

• 50-499 employees     135,000

- Large businesses:     116,000

• 500-999 employees     32,000
• 1,000+ employees     83,000

By Sector

- Goods-producing:     17,000

• Natural resources/mining     3,000
• Construction     7,000
• Manufacturing     7,000

- Service-providing:     348,000

• Trade/transportation/utilities     53,000
• Information     0
• Financial activities     6,000
• Professional/business services     60,000
       - Professional/technical services     19,000
       - Management of companies/enterprises     2,000
       - Administrative/support services     40,000
• Education/health services     79,000
       - Health care/social assistance     68,000
       - Education     11,000
• Leisure/hospitality     125,000
• Other services     23,000

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

- Franchise Employment**

• Franchise jobs     49,600

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

"The labor market continues to add jobs, yet at a slower pace," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Although the pace is slower, we've seen employment gains across all industries and sizes."

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 September total of jobs added was revised from 749,000 to 753,000.  

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 November 2020 ADP National Employment Report will be released at 8:15 a.m. ET on December 2, 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 12^th 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.

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SOURCE ADP, Inc.

FAQ

What does the October 2020 ADP National Employment Report indicate about private sector employment?

The report indicates an increase of 365,000 jobs in the private sector from September to October 2020.

How many jobs did small businesses add in October 2020 according to ADP?

Small businesses added 114,000 jobs in October 2020.

What sectors showed growth in the October 2020 ADP report?

The service-providing sectors showed significant growth, adding 348,000 jobs.

When will the next ADP National Employment Report be released?

The next report will be released at 8:15 a.m. ET on December 2, 2020.

How is the ADP National Employment Report developed?

The report is developed from actual payroll data of ADP's clients, representing nearly 26 million workers in the U.S.