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ADP National Employment Report Shows United States Added 57,000 Private Sector Jobs in February

ADP Enhances Report Methodology and Introduces New Industry and Company Size Data

ROSELAND, NJ -- (MARKET WIRE) -- 03/07/07 -- Private sector employment increased by 57,000 in February, according to today's ADP National Employment Report. Beginning today, the ADP National Employment Report will be developed from a significantly larger sample of anonymous payroll data, and will utilize more advanced data filtering and seasonal adjustment procedures. The ADP Report also has been broadened to now include additional detail on nonfarm private employment by select industry sectors and by company size.

Nonfarm Private Employment Highlights - February Report:

--  Total employment:                  +57,000

--  Small businesses*                  +53,000
--  Medium businesses**                +33,000
--  Large businesses***                -29,000

--  Goods-producing sector:            -43,000

--  Service-providing sector:         +100,000


--  Manufacturing industry:            -29,000

    * Small businesses represent payrolls with 1-49 employees
    ** Medium businesses represent payrolls with 50-499 employees
    *** Large businesses represent payrolls with more than 499 employees

"Today marks an exciting milestone for the ADP National Employment Report," said Gary Butler, President and CEO, ADP. "We have made the ADP Report more comprehensive with the addition of monthly employment data by industry and company size, thus providing economists, financial professionals, and government policy makers with new and valuable information about the national labor market."

"Private nonfarm employment grew a modest 57,000 from January to February of 2007 on a seasonally adjusted basis, according to the ADP National Employment Report," said Joel Prakken, Chairman of Macroeconomic Advisers, LLC. "This month's ADP National Employment Report suggests employment in February grew somewhat less than the recent three month average increase in employment of 99,000, as estimated by the ADP National Employment Report."

Prakken added, "Continuing recent trends, employment in the service-providing sector of the economy advanced 100,000, while employment in the goods-producing sector, which includes the construction industry, declined by 43,000. Employment in manufacturing industries fell by 29,000."

"Other new detail in The ADP Report shows that employment at small and medium size businesses employing less than 500 workers grew 86,000, while employment at larger businesses declined 29,000. Over the last six months, small and medium size businesses accounted for most of the growth in private nonfarm employment," said Prakken.

|           Revisions to the ADP National Employment Report(TM)              |
|                                                                         |
| The February 2007 ADP National Employment Report released on Wednesday  |
| March 7, 2007 is the first regularly released ADP Report to incorporate |
| key methodological revisions, including: (1) a larger sample of         |
| payrolls; (2) improved procedures for seasonal adjustment; (3) better   |
| detection of outliers; and (4) additional detail on private nonfarm     |
| employment by select industry and by size of payroll. Additional details|
| on the revisions are available at          |

The matched sample used to develop the ADP National Employment Report was derived from ADP data and, during the last six months of 2006, averaged 364,000 payrolls representing 22 million U.S. employees. This approximately represents the size of the matched sample used this month.

Goods-Producing Sector

Nonfarm private employment in the goods-producing sector decreased by 43,000 in February, according to the ADP National Employment Report.

--  Small businesses    -3,000
--  Medium businesses   -17,000
--  Large businesses    -23,000

Service-Providing Sector

Nonfarm private employment in the service-providing sector increased by 100,000 in February, according to the ADP National Employment Report.

--  Small businesses    +56,000
--  Medium businesses   +50,000
--  Large businesses    -6,000

Company Size

Total nonfarm private employment in the United States increased in Small and Medium businesses and decreased in Large businesses in February, according to the ADP National Employment Report.

--  Small businesses    +53,000
--  Medium businesses   +33,000
--  Large businesses    -29,000

Interpreting the Report

The forecasts of total nonfarm private employment, as well as nonfarm private employment by industry sector and company size are represented as both a monthly employment level and a monthly change in employment. The employment level represents the number of nonfarm private jobs in the U.S. economy at a common point in time each month. The change in monthly employment represents the increase or decrease in employment between these common points in time in two consecutive months.

To obtain additional information about the ADP National Employment Report including supporting data and the schedule of future release dates, or to subscribe to the monthly e-mail alerts and RSS feeds, please visit The March 2007 ADP National Employment Report will be released on Wednesday, April 4, 2007 at 8:15 a.m. EDT.

About the ADP National Employment Report(SM)

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 500,000 U.S. business clients. During the last six months of 2006, this subset represented approximately 364,000 U.S. business clients and approximately 22 million U.S. employees working in all private industrial sectors. The data 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.

Empirical analysis performed by Macroeconomic Advisers suggests that the ADP National Employment Report can be used to develop a forecast of "true" employment that is superior to those resulting from consensus estimates, survey data, or other models of employment that do not incorporate the results of the ADP Report.

For a description of the underlying data and the statistical properties of the series, please see "ADP National Employment Report: Development Methodology" at

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with nearly $9 billion in revenues and more than 570,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefits administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50 years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. Approximately 540,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at

About Macroeconomic Advisers, LLC

Macroeconomic Advisers, LLC (MA) has been the most trusted source for U.S. macroeconomic forecasts and commentary, monetary and fiscal policy analysis, and econometric modeling for over 20 years. MA has three primary service lines: (1) Macroeconomic Modeling. MA licenses its structural econometric model of the U.S. economy to firms who use it to produce their own macroeconomic forecasts; (2) U.S. Economic Forecasts. MA produces monthly economic forecasts, weekly economic commentaries, and analysis of economic indicators; (3) Monetary Policy Insights (MPI). Directed by MA co-founder and former Federal Reserve Board Governor Laurence Meyer, MPI ties MA's economic forecasts to the prospective course of monetary policy and the resulting implications for fixed-income markets. MA's clients include leading financial service firms, nonfinancial corporations, key policymaking agencies of the U.S. government, as well as State and Foreign Government agencies. Additional information on Macroeconomic Advisers, LLC is available on the company's Web site,

The ADP National Employment Report is a trademark and service mark of ADP of North America, Inc.

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Media Contacts:
ADP Public Relations
(973) 974-7612
[email protected]

Zach Siegel
Cohn & Wolfe for ADP
(212) 798-9859
[email protected]

Kate Leeson
Cohn & Wolfe for ADP
(212) 798-9861
[email protected]

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