ADP Shows 79k Jobs Lost In June, Official BLS Jobs Report Tomorrow

The ADP Employment report showed 79,000 jobs lost in June. In recent months, the ADP report showed positive numbers and then the subsequent Bureau of Labor Statistics jobs reports have come in negative. The ADP report is produced by payroll processing company ADP, and they describe it as follows:

The ADP National Employment Report® is a measure of nonfarm private employment, based on a subset of aggregated and anonymous payroll data that represents approximately 392,000 of ADP’s 500,000 U.S. business clients and roughly 24 million employees working in all 19 of the major North American Industrial Classification (NAICS) private industrial sectors. Because ADP pays 1-in-6 private sector employees in the United States every pay period across a broad range of industries, firm sizes, and geographies, it has a unique and significant perspective on the U.S. labor market.

The ADP report is certainly looked to by markets, but the BLS is the de facto data that is traded on. As is evident from the statement above, ADP would like to influence markets more, but that’s hard to do after consistently missing the mark recently. Either things are getting a lot worse, or ADP is just becoming more accurate on actual losses. We will find out tomorrow, but in the meantime, below is a description of the BLS Jobs report and here is a link to the May jobs report release in June.

Each month the Current Employment Statistics (CES) program surveys about 150,000 businesses and government agencies, representing approximately 390,000 individual worksites, in order to provide detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls for all 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, and over 300 metropolitan areas and divisions.

Their report comes out the first Friday of every month — because of the holiday-shortened week this week, it’s on a Thursday.