Photo: Wikimedia Commons
ADP announced today that starting Nov. 1 it would release an expanded payroll survey method to include more firms and employees.Since 2006, ADP has published monthly payroll data from an anonymous subset of the firm’s clients in the U.S.
The Wall Street Journal’s Steven Russolillo noted last month that ADP suffers from “an uneven track record of predicting the nonfarm payrolls data.”
“Some months it’s spot on, others it’s wildly off base,” Russolillo said.
Until now, ADP reported on 344,000 U.S. companies and 21 million employees.
It will now report on 406,000 companies and 23 million employees.
In its announcement, ADP admitted that it was trying to catch up with the BLS:
Other key enhancements of the report include the development of a new methodology to further align with the final, revised U.S. Bureau of labour Statistics (BLS) numbers.
A look back at historical data from 2001 to present using the new methodology shows a very strong correlation (96%) with the revised BLS numbers.
In general, it seems like a good move. ADP will now report data for five business sizes instead of three and has increased the number of industries it surveys.
The company also said it would henceforth be working with Moody’s to produce the report, adding it had “amicably” ended its relationship with Macroeconomic Advisers.
Business Insider Emails & Alerts
Site highlights each day to your inbox.