How ADP employment data compares with official BLS jobs reports

The ongoing shutdown of major pieces of the federal government has meant missed paychecks for federal workers, no new loans from the Small Business Administration, no giant panda cam from the National Zoo – and no jobs data from the federal Bureau of Labor Statistics, or BLS.

Federal economic data historically has been considered the gold standard, and the BLS’s monthly report on national employment and unemployment is a key resource for policymakers, economists, investors and others. It helps businesses decide whether to invest or pull back, the Federal Reserve decide to raise or lower interest rates, and much more.

Without BLS’s reports, many economy watchers turn to other indicators to get a sense of the nation’s labor markets. One alternative is the national employment report from Automatic Data Processing Inc., or ADP.

ADP is one of the nation’s largest human resources technology companies. Its business includes processing payrolls for more than 500,000 U.S. employers covering some 26 million workers. That’s roughly a fifth of the country’s private sector workforce.

ADP’s data is on a large enough scale that, until recently, the company provided some of it to the Federal Reserve for a more immediate sense of economic conditions. Using that data trove, ADP produces its employment report in collaboration with Stanford University’s Digital Economy Lab.

How we did this

Pew Research Center conducted this analysis to explore how well Automatic Data Processing Inc.’s National Employment Report could substitute for the monthly jobs report from the federal Bureau of Labor Statistics, which has been suspended since the partial government shutdown began on Oct. 1, 2025.

ADP’s data series start in January 2010, so we pulled corresponding monthly data from BLS. The BLS data categories mostly align with ADP’s, but due to some methodological differences, we attempted to level the two sets as best we could:

  • Since the ADP data only covers private sector jobs, we limited our analysis to BLS’s private-sector employment data. Federal, state and local governments accounted for about 22.7 million jobs (not seasonally adjusted) in August, or 14.2% of all nonfarm payroll jobs, according to BLS.
  • One of ADP’s 10 industry categories, “natural resources and mining,” consistently included 1 million to 1.2 million more jobs than the analogous BLS category, “mining and logging.” Another, “other services,” was consistently a million or so jobs smaller in the ADP data than in the BLS. This is likely due to differences in the categories’ definitions, but ADP didn’t respond to our requests for clarification.
  • The BLS publishes employment data by state but not by Census regions. We aggregated the BLS state-level data to match ADP’s divisions by region.
  • BLS data on employment by establishment size comes from the Quarterly Census of Employment and Wages, which is derived from companies’ unemployment tax filings. Those figures only cover the first three months of each year and are presented in nine categories based on number of employees. We collapsed them into five categories to match ADP and compared them against the January to March data from ADP.

Once we matched the two datasets, we plotted them against each other and ran a linear regression program. We made ADP the independent variable because its report usually comes out a day or two before BLS. The analysis generated a statistic called a “coefficient of determination,” usually denoted as R2.

R2 represents how much of the variance in the dependent variable – in this case the BLS figure – is explained by the independent variable. If there was no relationship whatsoever between the two datasets, R2 would be zero. If the ADP values completely predicted the BLS numbers, R2 would be one. The closer R2 is to one, the more closely aligned the data series are.

How do BLS and ADP employment figures compare?


BLS and ADP estimates on private sector employment are quite closely aligned most years

Private sector employment in the U.S., seasonally adjusted, in thousands

Chart

Note: Seasonal adjustment prevents data misinterpretation by adjusting for predictable events, such as holidays or seasonal changes in employment numbers.
Source: Pew Research Center analysis of the Bureau of Labor Statistics’ “Current Employment Statistics” and Automatic Data Processing’s “National Employment Report.”

PEW RESEARCH CENTER



BLS and ADP estimates on private sector employment are quite closely aligned most years

Private sector employment in the U.S., seasonally adjusted, in thousands

Date ADP BLS
1/2010 106,884 107,311
2/2010 106,401 107,229
3/2010 105,935 107,347
4/2010 106,029 107,551
5/2010 106,189 107,647
6/2010 106,258 107,769
7/2010 106,410 107,846
8/2010 106,509 107,996
9/2010 106,685 108,095
10/2010 106,814 108,324
11/2010 106,944 108,462
12/2010 107,047 108,564
1/2011 107,306 108,579
2/2011 107,582 108,841
3/2011 107,842 109,090
4/2011 108,162 109,413
5/2011 108,326 109,575
6/2011 108,516 109,767
7/2011 108,736 109,944
8/2011 108,947 110,108
9/2011 109,224 110,361
10/2011 109,351 110,555
11/2011 109,539 110,719
12/2011 109,665 110,934
1/2012 109,982 111,299
2/2012 110,298 111,561
3/2012 110,533 111,805
4/2012 110,768 111,894
5/2012 110,874 112,022
6/2012 111,085 112,082
7/2012 111,101 112,244
8/2012 111,223 112,422
9/2012 111,377 112,592
10/2012 111,681 112,765
11/2012 111,979 112,942
12/2012 111,848 113,187
1/2013 112,307 113,388
2/2013 112,487 113,664
3/2013 112,653 113,819
4/2013 112,696 114,004
5/2013 112,884 114,231
6/2013 112,937 114,439
7/2013 113,112 114,576
8/2013 113,361 114,815
9/2013 113,535 114,986
10/2013 113,625 115,211
11/2013 113,847 115,473
12/2013 114,427 115,553
1/2014 114,499 115,747
2/2014 114,719 115,887
3/2014 114,908 116,152
4/2014 115,181 116,444
5/2014 115,450 116,680
6/2014 115,736 116,954
7/2014 115,982 117,172
8/2014 116,274 117,414
9/2014 116,419 117,666
10/2014 116,721 117,880
11/2014 116,952 118,158
12/2014 117,219 118,417
1/2015 117,345 118,608
2/2015 117,471 118,849
3/2015 117,609 118,953
4/2015 117,873 119,191
5/2015 118,183 119,526
6/2015 118,328 119,694
7/2015 118,573 119,941
8/2015 118,716 120,065
9/2015 119,022 120,235
10/2015 119,251 120,523
11/2015 119,353 120,727
12/2015 119,499 120,980
1/2016 119,718 121,096
2/2016 119,968 121,269
3/2016 120,126 121,484
4/2016 120,372 121,671
5/2016 120,421 121,701
6/2016 120,685 121,966
7/2016 120,896 122,231
8/2016 121,019 122,378
9/2016 121,199 122,644
10/2016 121,356 122,771
11/2016 121,571 122,906
12/2016 121,677 123,104
1/2017 121,905 123,312
2/2017 121,991 123,522
3/2017 122,097 123,640
4/2017 122,244 123,839
5/2017 122,485 124,033
6/2017 122,674 124,223
7/2017 122,839 124,398
8/2017 123,004 124,609
9/2017 123,250 124,674
10/2017 123,359 124,789
11/2017 123,569 124,994
12/2017 123,783 125,139
1/2018 124,027 125,286
2/2018 124,253 125,635
3/2018 124,444 125,853
4/2018 124,526 125,978
5/2018 124,636 126,291
6/2018 124,843 126,477
7/2018 125,014 126,584
8/2018 125,258 126,811
9/2018 125,336 126,884
10/2018 125,591 127,047
11/2018 125,786 127,144
12/2018 125,808 127,298
1/2019 126,217 127,551
2/2019 126,376 127,540
3/2019 126,340 127,726
4/2019 126,393 127,974
5/2019 126,505 128,059
6/2019 126,520 128,235
7/2019 126,555 128,364
8/2019 126,558 128,546
9/2019 126,367 128,712
10/2019 126,443 128,790
11/2019 126,463 128,959
12/2019 126,910 129,069
1/2020 126,626 129,250
2/2020 126,733 129,435
3/2020 126,631 128,068
4/2020 120,537 108,515
5/2020 117,310 111,647
6/2020 117,202 116,259
7/2020 117,184 117,741
8/2020 117,294 118,819
9/2020 118,220 119,841
10/2020 118,860 120,656
11/2020 119,428 121,048
12/2020 120,141 120,870
1/2021 120,591 121,134
2/2021 120,782 121,658
3/2021 121,185 122,390
4/2021 121,239 122,702
5/2021 121,363 123,122
6/2021 121,715 123,824
7/2021 122,729 124,704
8/2021 123,976 125,147
9/2021 124,871 125,632
10/2021 125,666 126,526
11/2021 126,264 127,162
12/2021 126,962 127,707
1/2022 127,179 127,950
2/2022 127,710 128,834
3/2022 127,987 129,304
4/2022 128,311 129,572
5/2022 128,556 129,789
6/2022 129,051 130,229
7/2022 129,556 130,767
8/2022 129,879 131,017
9/2022 130,323 131,233
10/2022 130,541 131,604
11/2022 130,762 131,836
12/2022 130,884 131,963
1/2023 131,131 132,288
2/2023 131,288 132,538
3/2023 131,235 132,586
4/2023 131,367 132,753
5/2023 131,419 132,919
6/2023 131,565 133,089
7/2023 131,703 133,199
8/2023 131,822 133,307
9/2023 131,917 133,396
10/2023 132,047 133,513
11/2023 132,147 133,610
12/2023 132,242 133,823
1/2024 132,371 133,896
2/2024 132,462 134,047
3/2024 132,544 134,216
4/2024 132,657 134,345
5/2024 132,821 134,505
6/2024 132,957 134,571
7/2024 132,999 134,611
8/2024 133,179 134,644
9/2024 133,373 134,852
10/2024 133,594 134,851
11/2024 133,798 135,095
12/2024 133,974 135,382
1/2025 134,160 135,461
2/2025 134,244 135,568
3/2025 134,391 135,682
4/2025 134,451 135,815
5/2025 134,480 135,884
6/2025 134,457 135,857
7/2025 134,561 135,934
8/2025 134,558 135,972

Note: Seasonal adjustment prevents data misinterpretation by adjusting for predictable events, such as holidays or seasonal changes in employment numbers.
Source: Pew Research Center analysis of the Bureau of Labor Statistics’ “Current Employment Statistics” and Automatic Data Processing’s “National Employment Report.”

PEW RESEARCH CENTER


We calculated a statistic called the coefficient of determination, also known as R2, to gauge how similar the BLS and ADP private sector data series are. R2 ranges from zero to one; the higher the value, the closer the two series are. (For a more detailed explanation, read the “How we did this” section.)

Statistics on private sector jobs from ADP and BLS are highly correlated. Since the start of ADP’s series in 2010, the R2 for the two national private sector employment reports is 0.9817 (when adjusted to account for seasonal variations) and 0.9771 (not seasonally adjusted).

Beyond those headline numbers, both ADP and BLS break down their employment data into smaller categories. We compared three subseries that both entities use – workforce size, region and industry – and found most of them were strongly correlated as well.

From the smallest businesses (one to 19 employees) to the largest (500 or more employees), the R2 scores for workforce size are all well above 0.98 (not seasonally adjusted). All nine Census regions have scores above 0.87 (in both their seasonally adjusted and unadjusted versions), and five are above 0.97.

Seven of the 10 industry groups have R2 scores above 0.9 (seasonally adjusted and unadjusted). The leisure and hospitality industry is close behind, at above 0.8 for unadjusted and adjusted.

Two industries – mining/logging/natural resources and “other services” – are considerably less correlated, likely because ADP and BLS define them differently.

There are other key differences in how the two entities produce their reports. The BLS jobs report comes from two surveys: one of 60,000 households (which generates the unemployment rate) and the other of 121,000 business establishments (which generates the payroll employment figures). ADP bases its report on anonymized, aggregated payroll data from its clients. It measures job growth or shrinkage by comparing employers’ payrolls in a given pay period with those from the previous pay period.

Those differences mean the ADP data can’t perfectly substitute the BLS data. For one thing, the ADP data isn’t representative of the entire economy; the company’s client base tilts more toward mid-sized businesses than the BLS employer survey does. The ADP data also excludes government workers entirely and doesn’t allow as detailed of an analysis as the BLS datasets. (If you want to know how many leisure and hospitality jobs there are in Athens, Georgia, the BLS is where you want to go.)

But the two data series share some important similarities. Both use the week that includes the 12th of each month as their monthly reference point (though ADP releases new data weekly). And both use the BLS’s Quarterly Census of Employment and Wages, or QCEW, to benchmark and revise their monthly estimates. The QCEW comes from employers’ unemployment tax filings and covers more than 95% of all U.S. jobs. But it has a time lag of several months and was last published in September (covering the first quarter of 2025).

In general, the BLS tends to estimate that there are somewhat more private sector payroll jobs than ADP. And in any given month, the two indicators may point in different directions or show greater or lesser month-over-month changes. (This was particularly true in the early days of the COVID-19 pandemic, when the BLS jobs figure fell more precipitously than ADP’s.)

Employment figures are by no means the only government economic data affected by the shutdown. The BLS produces monthly readings on consumer prices, job openings and layoffs, and other closely watched economic reports, all of which have been disrupted. (The bureau did release its inflation report for September, but only after a nine-day delay.)

Other important federal agencies that produce economic data, such as the Bureau of Economic Analysis and the Census Bureau, aren’t generating or releasing any new data either. Even after the government fully reopens, data releases likely will take some time to get back on schedule.

Most ADP and BLS jobs categories are very similar

R2, Not seasonally adjusted R2, Seasonally adjusted
INDUSTRY GROUPS:
Professional & business services  0.9907 0.9907
Trade, transportation & utilities  0.9769 0.9875
Financial  0.9759 0.9878
Construction  0.9733 0.9944
Education & health care  0.9713 0.9846
Manufacturing  0.9676 0.9692
Information  0.9332 0.9563
Leisure & hospitality  0.8491 0.8697
Mining, logging & natural resources  0.7034 0.7210
Other services  0.5449 0.5353
CENSUS DIVISION:
Mountain  0.9932 0.9949
West South Central  0.9865 0.9925
South Atlantic  0.9856 0.9901
Pacific  0.9719 0.9761
East South Central  0.9709 0.9827
West North Central  0.9416 0.9559
East North Central  0.9202 0.9226
Mid-Atlantic  0.8854 0.8935
New England  0.8763 0.8825
ESTABLISHMENT SIZE:
1 to 19 employees 0.9934
20 to 49 employees 0.9844
50 to 249 employees 0.9859
250 to 499 employees 0.9936
500 or more employees 0.9923

Note: The R2 statistic indicates how closely the ADP data predicts (or aligns with) the BLS data. The value ranges between 0 and 1 – the closer to 1, the more similar the two series are.
Source: Pew Research Center analysis of the Bureau of Labor Statistics’ “Current Employment Statistics” and Automatic Data Processing’s “National Employment Report.”

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