ADP Non-Farm Employment Change: A Powerful Predictor of US Labor Market Trends and its Implications on Financial Markets
The Automatic Data Processing Inc. (ADP) Non-Farm Employment Change report is published by the ADP Research Institute on a monthly basis. This report provides an estimate of the number of jobs added or lost in the non-farm private sector of the U.S. economy. The report is based on data obtained from ADP's payroll processing services, which covers around 24 million employees, and it is considered as a reliable indicator of the labor market's health and future trends.
The non-farm private sector is composed of all private businesses in the United States, excluding the agricultural, government, and non-profit sectors. The sector includes businesses of all sizes, from small and medium-sized enterprises to large corporations, and covers a wide range of industries such as manufacturing, construction, retail, healthcare, finance, and professional services.
The report is closely watched by economists, investors, and policy makers as it provides a leading indicator of the Bureau of LaborStatistics' (BLS) monthly Employment Situation report, which is more comprehensive and covers both the private and public sectors. The ADP report provides insights into the current state of the labor market and can help anticipate the direction of the labor market and the broader economy. Positive figures indicate job growth and a strengthening economy, while negative figures indicate job losses and a weakening economy.
The release of this data causes a significant impact on financial markets. On the previous release of the ADP Non-Farm Employment Change the Dow Jones Industrial Average (DJIA) fluctuated over 100 points within the 15 minutes immediately following. The next release of the ADP Non-Farm Employment Change data is scheduled for Wednesday, April 5th at 8:15 AM EST. Traders should exercise caution when entering or managing positions during the release of this data
