According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC,”Nonfarm private employment decreased 697,000 from January to February on aseasonally adjusted basis, according to the ADP National EmploymentReport.”
Prakken added, “February’s ADP Report estimates nonfarm private employmentin the service-providing sector fell by 359,000. Employment in the goods-producing sector declined 338,000, the twenty-sixth consecutive monthlydecline. Employment in the manufacturing sector declined 219,000, markingthree full years of consecutive monthly declines.”
“Large businesses, defined as those with 500 or more workers, sawemployment decline 121,000, while medium-size businesses with between 50and 499 workers declined 314,000. Employment among small-size businesses,defined as those with fewer than 50 workers, declined 262,000. Sharplyfalling employment at medium- and small-size businesses clearly indicatesthat the recession is spreading aggressively beyond manufacturing andhousing-related activities,” said Prakken.
Prakken went on to say, “In February, construction employment dropped114,000. This was its twenty-fifth consecutive monthly decline, and marksa total loss of over one-million construction jobs since the peak inJanuary 2007.”
The matched sample used to develop the ADP National Employment Report wasderived from ADP data which, during the last six months of 2008, averagedapproximately 400,000 payrolls representing nearly 24 million U.S.employees. This approximately represents the size of the matched sampleused this month.
Small Business Highlights – February Report:
“Employment among small-size businesses, defined as those with fewer than50 workers, declined 262,000. The magnitude of this month’s job lossindicates that the recession has spread aggressively to small-sizebusinesses. Earlier in the recession these businesses had demonstrated moreresiliency than medium- and large-size ones, but that is no longer thecase,” said Joel Prakken.
About the ADP National Employment Report(R)
The ADP National Employment Report, sponsored by ADP(R), was developed andis maintained by Macroeconomic Advisers, LLC. It is a measure of employmentderived from an anonymous subset of roughly 500,000 U.S. business clients.During the last six months of 2008, this subset represented approximately400,000 U.S. business clients and nearly 24 million U.S. employees workingin all private industrial sectors. The ADP Small Business Report(R) is amonthly estimate of private nonfarm employment among companies in theUnited States with 1-49 employees and is a subset of the ADP NationalEmployment Report. The data for both reports is collected for pay periodsthat can be interpolated to include the week of the 12th of each month, andprocessed with statistical methodologies similar to those used by the U.S.Bureau of Labor Statistics to compute employment from its monthly survey ofestablishments. Due to this processing, this subset is modified to make itindicative of national employment levels; therefore, the resultingemployment changes computed for the ADP National Employment Report are notrepresentative of changes in ADP’s total base of U.S. business clients.
About Macroeconomic Advisers, LLC
The ADP National Employment Report is a registered trademark of ADP ofNorth America, Inc.