Report: Private-sector employment up in April, but manufacturing down

Manufacturing News, Source : The Manufacturer US
Published : 02 May 2007 15:22

According to today’s ADP National Employment Report, private-sector employment in the US increased by 64,000 in April. This follows a revised gain of 98,000 jobs in March. The report is based on actual payroll data and measures the change in total nonfarm private employment each month.

The total employment gain of 64,000 breaks down as an increase of 45,000 jobs for small businesses (defined as 1–49 employees), a gain of 29,000 for medium businesses (50–499 employees), and a loss of 10,000 jobs for large businesses (more than 499 employees), the fourth month in a row that large companies have shown a decline.

Joel Prakken, chairman of Macroeconomic Advisers, explained, “Continuing recent trends, employment grew 106,000 in the service-providing sectors of the economy, but fell 42,000 in the goods-producing sectors, which includes a decline of 20,000 in the manufacturing sector.”

The increase in the service-providing sector breaks down into gains for small businesses of 55,000; for medium businesses, 47,000; and for large businesses, 4,000. The drop of 42,000 jobs in the goods-producing sector represents losses of 10,000 for small businesses; 18,000 for medium businesses, and 14,000 for large businesses.

The matched sample used to develop the ADP National Employment Report was derived from ADP data which, during the last six months of 2006, averaged 364,000 payrolls representing 22 million US employees. This approximately represents the size of the matched sample used this month.

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