According to the National Employment Report released by Automatic Data Processing (ADP), US non-farm payrolls increased by 44,000 in July, falling short of the estimated 68,000. The non-farm employment index, released by private company ADP, is published before the US Department of Labor's announcement and is calculated based on over 500,000 companies that use ADP's payroll management services. In contrast, the non-farm employment index released by the US Department of Labor is an official indicator that also includes changes in government sector employment. The non-farm employment index is data referenced by the US Federal Reserve when making interest rate decisions. If employment indicators are strong, the Fed may consider raising or freezing interest rates to prevent overheating, and if employment indicators are weak, it may consider lowering interest rates to stimulate the economy.
