Categories: Economy

A Puzzle: Private NFP and the Preliminary Benchmark vs. Current Official


The ADP survey cumulative increase in private NFP since 2023M03 is 3.1mn, more than the 2.8mn reported in the current official CES series.

In contrast, the preliminary benchmark indicates 819 thousand less in March 2024 than the current official series. Assuming the increases in private NFP since March 2024, the increase in employment is 2.0mn.

Figure 1: Cumulative increase in private NFP since March 2023 according to CES (blue), according to ADP (tan), according to preliminary benchmark (red square), all in 000’s, s.a. Source: BLS, ADP via FRED, BLS, and author’s calculations.

The ADP-Stanford series is not based on a survey, but actual check cutting operations. The Preliminary Benchmark relies upon QCEW (unemployment insurance). While the QCEW is a census, the data gets updated. In addition, some employment will not be captured since some employment is not reported to the tax authorities. Hence, Goldman Sachs thinks the effective downward revision is about 300K, instead of 818K, for the total NFP (no separate figure reported by GS for private NFP).

 

 



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