ADP Research Institute and Stanford Digital Economy Lab Unveil New Methodology for ADP National Employment Report

Rhea-AI Summary

The ADP Research Institute, in collaboration with the Stanford Digital Economy Lab, has launched a new high-frequency data series for the ADP National Employment Report. Available starting August 31, this innovative methodology aims to provide detailed insights into U.S. workforce dynamics, encompassing jobs and pay data from over 25 million workers. Key features include a monthly jobs report detailing non-farm private employment changes and unique pay insights capturing median annual pay growth across various sectors. This initiative seeks to enhance labor market analysis and provide reliable economic indicators.

Positive

• Launch of a new high-frequency data series for the ADP National Employment Report to provide timely labor market insights.
• Leveraging payroll data from over 25 million employees enhances report accuracy and relevance.
• Monthly jobs report will detail non-farm private employment changes and industry-specific data.
• Unique pay insights reporting median pay growth across various demographics, enhancing labor market analysis.

Negative

• None.

New data series will serve as independent indicator of U.S. workforce and feature high-frequency jobs and pay data; first report available August 31

ROSELAND, N.J., Aug. 23, 2022 /PRNewswire/ -- ADP Research Institute (ADPRI) and the Stanford Digital Economy Lab (the Lab) have developed a new methodology for the ADP National Employment Report (NER) that will provide a more robust, high-frequency view of the labor market with a focus on both jobs and pay. Using fine-grained data, this new measure will deliver a richer labor market analysis that will help answer key economic and business questions and offer insights relevant to a broader audience.

The jobs report and pay insights, based on the payroll transactions of over 25 million U.S. workers, will provide a representative picture of the U.S. labor market each month.

• Jobs Report -- Based on anonymized and aggregated payroll data of over 25 million U.S. employees, this independent measure will detail the current month's non-farm private employment change and deliver weekly job data from the previous month. Data will be broken out by industry, business establishment size, and U.S. census region. Historical data from the previous 12 years at both monthly and weekly frequencies will be benchmarked and available at launch.
• Pay Insights – ADP's new pay measure uniquely captures the salaries of the same cohort of almost 10 million individual employees over a 12-month period. The new monthly measure will report median annual pay growth by industry, business establishment size, U.S. region, gender, and age. Quarterly reports focused on pay will expand on key areas of interest, such as bonuses, benefits, and gender gaps.

"As the labor market evolves, methods for measuring employment dynamics also need to evolve," ADP chief economist, Dr. Nela Richardson said. "Combining job and pay data in one report, coupled with high-frequency releases, will give us a clearer picture of the labor market. This real-time, independent assessment will provide business leaders, academia, economists and policymakers with a reliable read of the workforce. Our collaboration with the Stanford Digital Economy Lab will offer a stronger labor market indicator rooted in a new approach to the data. We look forward to the insights this report will deliver."  

"We are in the midst of a fundamental transformation of our ability to measure and understand changes in the labor market," said Stanford Professor Erik Brynjolfsson, Director of the Lab and Senior Fellow at the Stanford Institute for Human-Centered AI. "Working with the ADP Research Institute, the Stanford Digital Economy Lab is developing real-time insights not only into job creation and loss, but also changes in pay at an unprecedented level of detail."

ADPRI and the Lab announced their collaboration in April. Aligning with ADPRI's mission, the Lab focuses on how artificial intelligence and other technologies are affecting the workforce, business, and society.  The Lab is part of the Stanford Institute for Human-Centered Artificial Intelligence (HAI) and co-sponsored by the Stanford Institute for Economic Policy Research (SIEPR).

To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.   

About the ADP National Employment Report
The ADP National Employment Report is a high-frequency measure of the change in U.S. nonfarm, private employment and pay derived from actual, anonymous payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.

About the ADP Research Institute
The ADP Research Institute delivers data-driven discoveries about the world of work and derives reliable economic indicators from these insights. We offer these findings as a unique contribution to improving the world of work and delivering actionable insights to the economy at large.

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, Always Designing for People, and ADP Research Institute are trademarks of ADP, Inc.

Copyright © 2022 ADP, Inc. All rights reserved.

 

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SOURCE ADP, Inc.

FAQ

What is the new methodology for the ADP National Employment Report?

The new methodology combines jobs and pay data to provide a high-frequency view of the U.S. labor market, capturing insights from over 25 million payroll transactions.

When will the first report from the new ADP methodology be available?

The first report using the new methodology will be available on August 31.

How will the ADP National Employment Report enhance labor market analysis?

The report will provide detailed insights into employment changes and pay growth across various sectors and demographics, improving the understanding of labor market dynamics.

What type of data will be included in the ADP jobs report?

The jobs report will include non-farm private employment changes and weekly job data, segmented by industry, establishment size, and region.

What insights can businesses expect from the new pay measure?

Businesses can expect insights on median annual pay growth by industry and demographics, as well as quarterly reports focusing on bonuses, benefits, and gender pay gaps.