ADP Employment Report Shows Fewer Than Expected April Jobs Losses
The ADP National Employment Report showed that private sector employment decreased by 491,000 in April, which was much better than the expected 645,000 job losses.
The Goods-producing sector lost 262,000 jobs and the Service-providing sector lost 229,000, jobs according to the ADP data.
Small businesses lost 183,000 jobs, Medium businesses lost 231,000 jobs and Large businesses lost 77,000 jobs, according to the ADP data.
Joel Prakken, Chairman of Macroeconomic Advisers, LLC, said, "Despite some recent indications that stock prices, consumer spending, and housing activity may be bottoming out, employment, which usually trails overall economic activity, is likely to decline for at least several more months, although perhaps not as rapidly as during the last six months."
The official nonfarm job loss numbers from the government will be reported on Friday and economists expect it will show 610,000 jobs losses. If the ADP report is correctly predictive, this number could also be better than expected. While the ADP report has been accurate at times, it has a volatile history as an accurate predictor of the government number.
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