FINAL Report October 09

Wednesday, November 4, 2009, 8:15 A.M. ET

Nonfarm private employment decreased 203,000 from September to October 2009 on aseasonally adjusted basis, according to the

ADP National Employment Report

®

. The estimatedchange of employment from August to September was revised by 27,000, from a decline of 254,000 to a decline of 227,000.October was the seventh consecutive month during which the decline in employment was lessthan in the previous month. Nevertheless, despite recent indications that overall economicactivity is stabilizing, employment, which usually trails overall economic activity, is likely todecline for at least a few more months.October’s

ADP Report

estimates nonfarm private employment in the service-providing sector fell by 86,000. Employment in the goods-producing sector declined 117,000, with employmentin the manufacturing sector dropping 65,000.Large businesses, defined as those with 500 or more workers, saw employment decline by53,000, while medium-size businesses with between 50 and 499 workers declined 75,000.Employment among small-size businesses, defined as those with fewer than 50 workers, declined75,000. Employment losses among small-size businesses were the smallest since July of 2008.In October, construction employment dropped 51,000. This was its thirty-third consecutivemonthly decline, and brings the total decline in construction jobs since the peak in January 2007to 1,675,000. Employment in the financial services sector dropped 18,000, the twenty-thirdconsecutive monthly decline.For information on the construction and use of the

ADP Report

, please visit the methodologysection of the

ADP National Employment Report

website athttp://ADPemploymentreport.com/methodology.aspx.

DERIVED FROM ADP PAYROLL DATATable 1. Employees on nonfarm private payrolls by selected industry sector and size

(In thousands)May2009Jun.2009Jul.2009Aug.2009Sep.2009pOct.2009pChangefrom:Sep.2009 -Oct.2009p

Total nonfarm private…………

109,787109,354109,007108,740108,513108,310-203Small (1-49)…………….48,66448,50448,37348,26348,17348,098-75Medium (50-499)……….42,90642,72042,57442,47342,39242,317-75Large (> 499)…………..18,21718,13018,06018,00417,94817,895-53

Goods-producing………….

19,09018,85318,68418,54318,39718,280-117Small (1-49)…………….6,9316,8466,7866,7276,6696,628-41Medium (50-499)……….8,3908,2888,2178,1648,1108,065-45Large (> 499)…………..3,7693,7193,6813,6523,6183,587-31

Service-providing…………

90,69790,50190,32390,19790,11690,030-86Small (1-49)…………….41,73341,65841,58741,53641,50441,470-34Medium (50-499)……….34,51634,43234,35734,30934,28234,252-30Large (> 499)…………..14,44814,41114,37914,35214,33014,308-22

Addendum:

Manufacturing………………11,97011,83611,74011,67111,59911,534-65p = preliminarySeasonally AdjustedIndustry / Size of Payroll

The matched sample used to develop the

ADP National Employment Report

was derived fromADP data, which during the twelve month period through June 2009, averaged approximately400,000 U.S. business clients and represented over 23 million U.S. employees. Thisapproximately represents the size of the matched sample used this month.

Chart 2. Growth of Private Nonfarm Employment, Goods-Producing Industries

-2.0-1.8-1.6-1.4-1.2-1.0-0.8-0.6-0.4-0.20.00.20.40.6

J a n - 0 1 A p r - 0 1 J u l - 0 1 O c t - 0 1 J a n - 0 2 A p r - 0 2 J u l - 0 2 O c t - 0 2 J a n - 0 3 A p r - 0 3 J u l - 0 3 O c t - 0 3 J a n - 0 4 A p r - 0 4 J u l - 0 4 O c t - 0 4 J a n - 0 5 A p r - 0 5 J u l - 0 5 O c t - 0 5 J a n - 0 6 A p r - 0 6 J u l - 0 6 O c t - 0 6 J a n - 0 7 A p r - 0 7 J u l - 0 7 O c t - 0 7 J a n - 0 8 A p r - 0 8 J u l - 0 8 O c t - 0 8 J a n - 0 9 A p r - 0 9 J u l - 0 9 O c t - 0 9

Source: Automatic Data Processing, Inc., Macroeconomic Advisers, LLC., Bureau of Labor Statistics

M o n t h l y P e r c e n t C h a n g e , S e a s o n a l l y A d j u s t e d

RecessionADP National Employment ReportBLS Current EstimateSimple Correlation = 0.95

Chart 3. Growth of Private Nonfarm Employment, Service-Providing Industries

-2.0-1.8-1.6-1.4-1.2-1.0-0.8-0.6-0.4-0.20.00.20.40.6

J a n - 0 1 A p r - 0 1 J u l - 0 1 O c t - 0 1 J a n - 0 2 A p r - 0 2 J u l - 0 2 O c t - 0 2 J a n - 0 3 A p r - 0 3 J u l - 0 3 O c t - 0 3 J a n - 0 4 A p r - 0 4 J u l - 0 4 O c t - 0 4 J a n - 0 5 A p r - 0 5 J u l - 0 5 O c t - 0 5 J a n - 0 6 A p r - 0 6 J u l - 0 6 O c t - 0 6 J a n - 0 7 A p r - 0 7 J u l - 0 7 O c t - 0 7 J a n - 0 8 A p r - 0 8 J u l - 0 8 O c t - 0 8 J a n - 0 9 A p r - 0 9 J u l - 0 9 O c t - 0 9

Source: Automatic Data Processing, Inc., Macroeconomic Advisers, LLC., Bureau of Labor Statistics