The ADP National Employment Report?provides a monthly snapshot of U.S. nonfarm private sector employment based on actual transactional payroll data.
It is also popularly known as the ADP Jobs Report or ADP Employment Report.
The report is sponsored by Automatic Data Processing Inc., the firm that has prepared the report since 2006, handles payroll for about a fifth of U.S. private employment.
The ADP National Employment Report is viewed as a useful preview to the more detailed Bureau of Labor Statistics’ Employment Situation Report.
Why is the ADP National Employment Report important?
If you’re employed by a non-government company, there’s a possibility that your paycheck is processed by Automatic Data Processing Inc. (ADP).
The company handles payroll for about a fifth of U.S. private employment, putting it in a unique position to survey trends in the nation’s labor market.
Traders often consider the ADP report as the prelude to the BLS release of NFP because of the?existent correlation between the two. The overlaying of both series below should speak for itself.
Another reason that forex traders follow this report is the same as with the Employment Situation report.
Solid growth in employment figures increases inflationary pressures which increase the likelihood that?the Federal Reserve will raise interest rates.
How to read it?
A strong report indicates a lot of hiring in the private sector.
If more people are working, household income rises and that fosters more consumer spending.
What forex traders look at this report, they try to determine what impact the estimates will have on U.S. interest rates.
Job growth of less than 100,000 a month?suggests a weakening economy.
Where to find it?
Previous months’ data, consensus, and actual releases are available.
What time is it released?
The ADP National Employment Report is published monthly by the ADP Research Institute in close collaboration with Moody’s Analytics.
The ADP National Employment Report s is?released on the?first Thursday of every month, at 8.15 am ET.