ADP National Employment Report: Private Sector Employment Increased by 177,000 Jobs in August

The ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody's Analytics.

PRESS RELEASE


Private sector employment increased by 177,000 jobs from July to August according to the August ADP National Employment Report (ADP is No. 21 on the DiversityInc Top 50 Companies for Diversity list) Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

August 2016 Report Highlights*

View the ADP National Employment Report Infographic at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 177,000

By Company Size:

Small businesses: 63,000

- 1-19 employees 24,000

- 20-49 employees 38,000

Medium businesses: 44,000

- 50-499 employees 44,000

Large businesses: 70,000

- 500-999 employees 25,000

- 1,000+ employees 46,000

By Sector

- Goods-producing -6,000

- Service-providing 183,000

Industry Snapshot

- Construction -2,000

- Manufacturing 0

- Trade/transportation/utilities 26,000

- Financial activities 15,000

- Professional/business services 53,000

* Sum of components may not equal total, due to rounding.

Franchise Employment**

- Franchise jobs 19,200

**Complete details on franchise employment can be found here.

Payrolls for businesses with 49 or fewer employees increased by 63,000 jobs in August, down from 68,000 in July. Employment at companies with 50-499 employees increased by 44,000 jobs, down from last month's 71,000. Employment at large companies -- those with 500 or more employees -- increased by 70,000, up from July's 56,000. Companies with 500-999 employees added 25,000 and companies with more than 1,000 employees added 46,000 in August.

Goods-producing employment was down by 6,000 jobs in August, following July losses of 5,000. The construction industry lost 2,000 jobs, following July losses of 5,000 jobs. Meanwhile, manufacturing jobs were flat in August, after gaining 5,000 in the previous month.

Service-providing employment rose by 183,000 jobs in August, fewer than July's 199,000 jobs. The ADP National Employment Report indicates that professional/business services contributed 53,000 jobs, down from July's 70,000. Trade/transportation/utilities increased by 26,000 jobs in August, down from 31,000 jobs added the previous month. Financial activities added 15,000 jobs, up from last month's gain of 13,000 jobs.

"Job growth in August was stable and consistent with levels from previous months as consumer conditions improve," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "Continued strong growth in service-providing jobs is offset by weakness in goods-producing areas."

Mark Zandi, chief economist of Moody's Analytics, said, "The American job machine continues to hum along. Job creation remains strong, with most industries and companies of all sizes adding solidly to their payrolls. The U.S. economy will soon be at full employment."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here:http://media.marketwire.com/attachments/201608/MOD-98642_Chart1.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here:http://media.marketwire.com/attachments/201608/MOD-98643_Chart2.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here:http://media.marketwire.com/attachments/201608/MOD-98644_Chart3.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here:http://media.marketwire.com/attachments/201608/MOD-98645_Chart4.jpg

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S.clients employing nearly 24 million workers in the U.S. The July total of jobs added was revised up from 179,000 to 194,000.

To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.adpemploymentreport.com.

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Changes in talent demographics, working arrangements and technology are impacting how employees need and want to be paid. To meet these shifts, paycards and digital accounts are increasingly becoming attractive options, allowing employees to access their pay how and when they want. Additionally, employers now have the opportunity to take an active interest in the financial wellbeing of their workers to help them get the most out of their pay.

ADP is continuing its innovation momentum by revolutionizing the way people are paid by introducing Wisely Pay by ADP. Wisely Pay is the next step in ADP's constant evolution to put clients and their workers at the forefront of macro trends shaping the employment landscape, including the growing number of freelance individuals.

"The world of work is changing and our clients look to us as the market leader in payments, to help them better engage with their entire workforce," said Doug Politi, president of Compliance Solutions at ADP. "Wisely Pay is leading the way people get paid in the future as a true bank alternative, with innovative services like instant pay, savings, digital wallet, and other financial management and wellness features that are better aligned with the evolving workforce."

The functionality of digital accounts, including paycards, and ease of access to funds have made them particularly popular among Millennials. According to a recent report commissioned by ADP, almost half of Gen Z (47 percent) and nearly a third of Millennials (31 percent) would turn down a job if they were unable to choose their method of pay. Additionally, this report revealed that 47 percent of Millennials and 66 percent of Gen Z have used a pre-loaded payment card in the last 12 months.

Wisely Pay is the first offering resulting from ADP's acquisition of Global Cash Card and provides the administrative tools and support to enable employers of any size, industry and workforce blend of full-time, part-time and/or freelance workers to enjoy:

  • Advanced technologies: Best-in-class experiences for cardholders and administrators from ADP's in-house digital payments platform, built by Global Cash Card and ADP's award-winning Instant Funding APIs.
  • Pay flexibility: Wisely Pay offers multiple ways to receive, spend, and manage money, including fully electronic options like peer-to-peer transfers, instant pay, and mobile digital wallets by Apple Pay®, Samsung Pay® and Android Pay®.
  • Attracting and retaining talent: The multi-generational workforce places unique demands on employers and Wisely Pay helps satisfy the needs of workers by offering a banking alternative with numerous funding options, easy cash access, broad purchasing capability, ability to avoid paper check fees and modern financial management tools.
  • Peace of mind: With a 50-state electronic pay program, backed by market-leading expertise and experience in the regulatory landscape, employers can rely on ADP Compliance Solutions, advanced data security and single point-of-contact resolution for all employer support or cardholder issues (e.g. fraud prevention, dispute resolution).

The Wisely paycard will first be available to employers who select to offer sponsored accounts for employees in September 2018 in the United States.