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44,000 Small Business Jobs Added in August

Service-providing sector continues to drive growth for small businesses.

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Private employment among small businesses (U.S. companies with fewer than 50 employees) increased by 44,000 in August, according to the ADP Small Business Reportreleased September 6. The ADP Small Business Report is based on data from the ADP National Employment Report created by ADPin partnership with Macroeconomic Advisers, LLC. In addition to providing monthly information on small business employment trends, the ADP Small Business Report includes information about short-term movements in the goods-producing and service-providing industry sectors.

Small Business Employment Highlights August Report:

  • Total small business employment: + 44,000
  • Goods-producing sector: - 8,000
  • Service-providing sector: + 52,000

Nonfarm private employment among small businesses grew 44,000 from July to August of 2007 on a seasonally adjusted basis, according to the ADP Small Business Report, said Joel Prakken, chairman of Macroeconomic Advisers, LLC. The moderate growth of employment among small businesses reported in this month's ADP Small Business Report suggests a continued deceleration of employment, though not to the extent observed among medium- and large-size businesses.

Small businesses accounted for the majority of nonfarm private employment growth in August with 44,000 jobs added, Prakken said. In contrast, employment among medium- and large-size businesses decreased by 6,000. Increases in employment at small businesses were concentrated in the service-providing sector of the economy, which showed a gain of 52,000. However, employment among small businesses in the goods-producing sector fell 8,000.

ADP - Graph 3a

ADP - Graph 3b

ADP - Graph 3c

Additional charts on monthly job growth and job levels, along with historical data, are available at

ADP Small Business Services provides payroll and business solutions for businesses with fewer than 50 employees. For more information on ADP Small Business Services, please visit

The September 2007 ADP Small Business Report will be released on Thursday, October 4, 2007.

About the ADP Small Business Report

The ADP Small Business Report is a monthly estimate of private nonfarm employment among companies in the U.S. with 1 to 49 employees. In partnership with Macroeconomic Advisers, LLC, the ADP Small Business Report is produced on a monthly basis by ADP Small Business Services, a provider of payroll, tax management, human resources, professional employer organization (PEO) and administrative services outsourcing (ASO) solutions to small businesses across all industries. ADP Small Business Services is part of ADP Employer Services, a leader in outsourced payroll, HR and benefits administration solutions. The information included in the ADP Small Business Report is based on data from the ADP National Employment Report, a measure of employment derived from an anonymous subset of 500,000 U.S. business clients. During the first six months of 2007, this subset represented approximately 383,000 U.S. business clients and nearly 23 million U.S. employees working in all private industrial sectors. The data 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 and the ADP Small Business Report are not representative of changes in ADP's total base of U.S. business clients or ADP's total base of U.S. small business clients. 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 based on actual payroll data and measures the change in total nonfarm private employment each month.

For a description of the underlying data and the statistical properties of the series, please see ADP National Employment Report: Development Methodology at

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with nearly $8 billion in revenues and approximately 585,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging more than 55 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 (800) 225-5237 or visit the company's website at

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 website

The ADP Small Business Report is a trademark and service mark of ADP of North America, Inc.