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ADP National Employment Report: Private Sector Employment Increased by 742,000 Jobs in April

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In April 2021, the private sector added 742,000 jobs, according to the ADP National Employment Report. This increase marks the strongest growth since September 2020. Job gains were led by the service sector, which contributed 636,000 jobs, while the goods-producing sector added 106,000 jobs. Small businesses generated 235,000 jobs, medium businesses 230,000, and large businesses 277,000. The March job addition was revised from 517,000 to 565,000. Despite job growth, there are still over 8 million jobs less than pre-COVID levels.

Positive
  • Private sector job growth of 742,000 in April 2021, indicating economic recovery.
  • Service sector leading growth with 636,000 jobs added.
  • Small and medium businesses contributed significantly with 235,000 and 230,000 jobs added, respectively.
Negative
  • Job levels remain over 8 million short of pre-COVID-19 figures.

ROSELAND, N.J., May 5, 2021 /PRNewswire/ -- Private sector employment increased by 742,000 jobs from March to April according to the April ADP® National Employment ReportTM.  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. 

April 2021 Report Highlights*

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

Total U.S. Nonfarm Private Employment:     742,000

By Company Size

- Small businesses:     235,000

  • 1-19 employees     122,000
  • 20-49 employees     113,000

- Medium businesses:     230,000

  • 50-499 employees     230,000

- Large businesses:     277,000

  • 500-999 employees     84,000
  • 1,000+ employees     193,000

By Sector

- Goods-producing:     106,000

  • Natural resources/mining     10,000
  • Construction     41,000
  • Manufacturing     55,000

- Service-providing:     636,000

  • Trade/transportation/utilities     155,000
  • Information     -3,000
  • Financial activities     11,000
  • Professional/business services     104,000
         - Professional/technical services     27,000
         - Management of companies/enterprises     5,000
         - Administrative/support services     72,000
  • Education/health services     92,000
         - Health care/social assistance     76,000
         - Education     16,000
  • Leisure/hospitality     237,000
  • Other services     40,000

* 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 an upward trend of acceleration and growth, posting the strongest reading since September 2020," said Nela Richardson, chief economist, ADP. "Service providers have the most to gain as the economy reopens, recovers and resumes normal activities and are leading job growth in April. While payrolls are still more than 8 million jobs short of pre-COVID-19 levels, job gains have totaled 1.3 million in the last two months after adding only about 1 million jobs over the course of the previous five months."

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 March total of jobs added was revised from 517,000 to 565,000.  

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 May 2021 ADP National Employment Report will be released at 8:15 a.m. ET on June 3, 2021.

About the ADP® National Employment ReportTM

The ADP® National Employment ReportTM 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 © 2021 ADP, Inc. All rights reserved.

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Chart 1. Change in Total Nonfarm Private Employment

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-742-000-jobs-in-april-301284331.html

SOURCE ADP, Inc.

FAQ

What does the April 2021 ADP National Employment Report indicate?

The report shows an increase of 742,000 jobs in the private sector, with significant contributions from the service sector.

How many jobs did small businesses add in April 2021?

Small businesses added 235,000 jobs in April 2021.

What was the revised job addition for March 2021 according to ADP?

The March job addition was revised from 517,000 to 565,000.

What sectors contributed to the job growth in April 2021?

The service sector contributed 636,000 jobs, while the goods-producing sector added 106,000 jobs.

How does the current job growth compare to pre-COVID-19 levels?

Despite the growth, the job levels are over 8 million short of pre-COVID-19 levels.

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