ADP Report Continues to Offer Evidence of a Weak Labor Market

ROSELAND, NJ -- (Marketwire) -- 10/01/08 -- According to today's ADP National Employment Report®, private sector employment decreased by 8,000 in September. 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.

Nonfarm Private Employment Highlights - September Report:
--  Total employment:              -8,000
--  Small businesses*             +28,000
--  Medium businesses**           -30,000
--  Large businesses***            -6,000
--  Goods-producing sector:       -72,000
--  Service-providing sector:     +64,000
Addendum:
--  Manufacturing industry:       -48,000
* Small businesses represent payrolls with 1-49 employees
** Medium businesses represent payrolls with 50-499 employees
*** Large businesses represent payrolls with more than 499 employees

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Nonfarm private employment decreased 8,000 from August to September 2008 on a seasonally adjusted basis, according to the ADP National Employment Report®. The estimated change in employment from July to August was revised down from a decrease of 33,000 to a decrease of 37,000. September's ADP National Employment Report continues to offer evidence of a weak labor market. Note that this month, the ADP Report does not reflect two special factors that might have further depressed employment in September. These are the strike of some 37,000 machinists against Boeing, and job losses related to hurricanes that struck the Gulf Coast."

Prakken added, "This month's employment loss was driven by the goods-producing sector which declined 72,000 during September, its twenty-second consecutive monthly decline. The manufacturing sector marked its twenty-fifth consecutive monthly decline, losing 48,000 jobs. These losses were somewhat offset by employment gains in the service-providing sector of the economy which advanced by 64,000."

"Large businesses, defined as those with 500 or more workers, saw employment decline 6,000, while medium-size companies with between 50 and 499 workers declined 30,000. Employment among small-size businesses, defined as those with fewer than 50 workers, advanced a moderate 28,000 during the month, after posting an even weaker gain of 17,000 in August," said Prakken.

Prakken went on to say, "Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending. Today's report suggests no lessening of the recent strain on employment in these industries. In September, construction employment dropped 29,000.