Stanford University

INSIGHTS

The New ADP® National Employment Report

in collaboration with Stanford Digital Economy Lab

August 31, 2021

For the first time ever, the ADP Research Institute, in collaboration with the Stanford Digital Economy Lab, is combining jobs and pay data into one comprehensive report.

The new ADP® National Employment Report (NER) launched today in collaboration with the Stanford Digital Economy Lab.

Earlier this spring, the ADP Research Institute paused the NER in order to refine the methodology and design of the report. Part of that evolution was teaming up data scientists at the Stanford Digital Economy Lab to add a new perspective and rigor to the report. The new report uses fine-grained, high-frequency data on jobs and wages to deliver a richer and more useful analysis of the labor market.

Let’s take a look at some of the key changes with the new NER, along with the new ADP® Pay Insights Report.

It’s independent. The key change is that the new ADP NER is an independent measure of the US labor market, rather than a forecast of the BLS monthly jobs number. Jobs report and pay insights are based on anonymized and aggregated payroll data from more than 25 million US employees across 500,000 companies. The new report focuses solely on ADP’s clients and private-sector change.

It’s comprehensive. The new report features jobs data by industry, establishment size, and US Census region, as well as pay insights in the ADP® Pay Insights Report. The data will also include measures of demographics, such as age and gender.

ADP payroll data includes payroll transactions data—when a person is paid, how much is paid—as well as administrative data about workers on the company payroll (even if they are not paid in the current pay period) and characteristics of the employer and employee.

It’s high frequency. The new NER provides a jobs estimate for the reference week in the current month, and a weekly data series for the previous month. This new approach provides a high-frequency view of the labor market—something the old report couldn’t do—which allows economists and policymakers to gain real-time insights into how the market is evolving.

How is the ADP National Employment Report different than the BLS?

– The ADP® National Employment and BLS both report on jobs (an employee-employer relation), not employed persons; a person may have more than one job.

– ADP produces a weekly-frequency data series for payroll jobs in each week while BLS produces a monthly-frequency data series for payroll jobs in the week that includes the 12th of the month.

– ADP reports on payroll employment and paid employment, while the BLS reports only on paid employment. Payroll employment shows how many people have an attachment to an employer in the labor market. Paid employment shows how many people are actively working and earning income in the labor market at any given time. Together, these measures provide a rich snapshot of the labor market.

“We are in the midst of a fundamental transformation of our ability to measure and understand changes in the labor market.”

ERIK BRYNJOLFSSON
Director, Stanford Digital Economy Lab

ADR® National Employment Report release calendar

August 31, 2022

October 05, 2022

November 02, 2022

November 30, 2022

Related

ADP® National Employment Report
Released August 31, 2022

ADP® Pay Insights Report
Released August 31, 2022

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