Last Updated on: 14th February 2021, 04:42 pm
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 Employment Report is viewed as a useful preview of 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.
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 ADP National Employment Report is it released?
The ADP Employment Report is published monthly by the ADP Research Institute in close collaboration with Moody’s Analytics.
The ADP Employment Report is released on the first Thursday of every month, at 8.15 am ET.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.