ADP National Employment Report Shows U.S. Employment Decreased by 491,000 Private Sector Jobs in April

ROSELAND, New Jersey - According to today’s ADP National Employment Report®, private sector employment decreased by 491,000 in April. The ADP National Employment Report, created by ADP® Employer Services, a division of Automatic Data Processing, Inc. (ADP), in partnership with Macroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month.

Nonfarm Private Employment Highlights -- April Report:

-- Total employment: -491,000

-- Small businesses* -183,000
-- Medium businesses** -231,000
-- Large businesses*** -77,000

-- Goods-producing sector: -262,000

-- Service-providing sector: -229,000

Addendum:
-- Manufacturing industry: -159,000


* 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

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, “Nonfarm private employment decreased 491,000 from March to April 2009 on a seasonally adjusted basis, according to the ADP National Employment Report. Despite some recent indications that stock prices, consumer spending, and housing activity may be bottoming out, employment, which usually trails overall economic activity, is likely to decline for at least several more months, although perhaps not as rapidly as during the last six months.”

Prakken added, “April’s ADP Report estimates nonfarm private employment in the service-providing sector fell by 229,000. Employment in the goods-producing sector declined 262,000, with employment in the manufacturing sector dropping 159,000, its thirty-eighth consecutive monthly decline.”

“Large businesses, defined as those with 500 or more workers, saw employment decline by 77,000, while medium-size businesses with between 50 and 499 workers declined 231,000. Employment among small-size businesses, defined as those with fewer than 50 workers, declined 183,000. The employment declines among medium- and small-size businesses indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy,” said Prakken.

Prakken went on to say, “In April, construction employment dropped 95,000. This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April’s decline, however, was the smallest since November of 2008.”

The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the last six months of 2008, averaged approximately 400,000 payrolls representing nearly 24 million U.S. employees. This approximately represents the size of the matched sample used this month.

Small Business Highlights -- April Report:

Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees will be reported in the ADP Small Business Report® each month. The ADP Small Business Report is a subset of the ADP National Employment Report.

-- Total small business employment: -183,000
-- Goods-producing sector: -91,000 small business jobs
-- Service-providing sector: -92,000 small business jobs

Private employment among small businesses decreased by 183,000 in April, according to the ADP Small Business Report released today. Additional information about small business employment, including charts on monthly job growth and employment levels, along with historical data, is available at http://www.smallbusinessreport.adp.com.

“Employment among small-size businesses, defined as those with fewer than 50 workers, declined 183,000. Though job losses are likely to continue for several more months, April’s number indicates these losses may not be as severe as those experienced during the last six months,” said Joel Prakken.

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 e-mail alerts and RSS feeds, please visit www.ADPemploymentreport.com. The May 2009 ADP National Employment Report will be released on Wednesday, June 3, 2009 at 8:15 a.m. ET.

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 last six months of 2008, this subset represented approximately 400,000 U.S. business clients and nearly 24 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.

About ADP
Automatic Data Processing, Inc., with nearly $9 billion in revenues and over 585,000 clients, is one of the world’s largest providers of business outsourcing solutions. Leveraging nearly 60 years of experience, ADP offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. ADP’s easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company’s Web site at www.ADP.com.

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 25 years. 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, www.MacroAdvisers.com.

The ADP National Employment Report is a registered trademark of ADP of North America, Inc.