Human Resources: May 2010 National Employment Report

Nonfarm private employment increased 55,000 from April to May 2010 on a seasonally adjusted

basis, according to the ADP National Employment Report. The estimated change in employment

from March to April 2010 was revised, from an increase of 32,000 to an increase of 65,000.

May’s rise in private employment was the fourth consecutive monthly gain. However, over

these four months the increases have averaged a modest 39,000. The slow pace of improvement

from February through May is consistent with the pause in the decline of initial unemployment

claims that occurred during the winter months.

Unlike the estimate of total establishment employment to be released on Friday by the Bureau of

Labor Statistics (BLS), today’s ADP Report does not include any federal hiring in May for the

2010 Census. For this reason it is reasonable to expect that Friday’s figure for nonfarm total

employment reported by the BLS will be considerably stronger than today’s estimate for

nonfarm private employment in the ADP Report.

May’s ADP Report estimates nonfarm private employment in the service-providing sector rose

by 78,000, the fifth consecutive monthly increase. Employment in the goods-producing sector

declined 23,000 with employment in the manufacturing sector increasing 15,000, the fourth

consecutive monthly increase.

Large businesses, defined as those with 500 or more workers, saw employment increase by 3,000

and employment among medium-size businesses, defined as those with between 50 and 499

workers increased by 39,000. Employment among small-size businesses, defined as those with

fewer than 50 workers, increased by 13,000 in May.*

In May, construction employment dropped 41,000. This was slightly less than last month’s

decline of 42,000. This was its thirty-fifth consecutive monthly decline, and brings the total

decline in construction jobs since the peak in January 2007 to 2,191,000. Employment in the

financial services sector dropped 8,000, resulting in over three years of consecutive monthly

decline.

For information on the construction sector and use of the ADP Report, please visit the

methodology section of the ADP National Employment Report website at

http://ADPemploymentreport.com/methodology.aspx.

About the ADP National Employment Report®

The ADP National Employment Report, sponsored by ADP®, was developed and is maintained

by Macroeconomic Advisers, LLC. It is a measure of employment derived from an anonymous

subset of roughly 500,000 U.S. business clients. During the twelve month period through

December 2009, this subset averaged over 360,000 U.S. business clients and over 22 million

U.S. employees working in all private industrial sectors. The ADP Small Business Report® is a

monthly estimate of private nonfarm employment among companies in the United States with 1-

49 employees and is a subset of the ADP National Employment Report. The data for both reports

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 properties of the series, please see

“ADP National Employment Report: Development Methodology” at

http://ADPemploymentreport.com/methodology.aspx.

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