ADP Job Figures Come in Below But Market Doesn't Worry
The ADP National Employment Report indicate U.S. companies added 170,000 private sector employees to the workforce in January, modestly below 40 economist's average of 182,000.
A majority of the hiring was found in small and mid size companies as companies who employee over 499 workers only added 3,000 jobs during the month. Of the 170,000 jobs added, 152,000 of them were service positions.
ADP's original figure for December showed an increase of 325,000 employees, but this was adjusted lower to 292,000. This has been a trend for ADP as they have revised their monthly figures lower since their July report. Only time and February’s report will give the actual ADP figure for January, my guess is it may be lower.
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Labor market conditions continue to improve at a moderate pace. Today's report marks the twenty-fourth consecutive monthly gain in private employment as measured in the ADP National Employment Report. This pick-up is consistent with the recent acceleration of the nation's Gross Domestic Product which, in the fourth quarter, grew at 2.8 percent -- the fastest pace since second quarter of 2010," Prakken said.
"Other indicators suggest some firming of labor market conditions as well, including the downward trend in unemployment claims, upturns in the components of consumer sentiment and confidence influenced by perceptions about the availability of jobs, and a rising trend in workers voluntary quitting their jobs," Prakken continued.
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A majority of the hiring was found in small and mid size companies as companies who employee over 499 workers only added 3,000 jobs during the month. Of the 170,000 jobs added, 152,000 of them were service positions.
ADP's original figure for December showed an increase of 325,000 employees, but this was adjusted lower to 292,000. This has been a trend for ADP as they have revised their monthly figures lower since their July report. Only time and February’s report will give the actual ADP figure for January, my guess is it may be lower.
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Labor market conditions continue to improve at a moderate pace. Today's report marks the twenty-fourth consecutive monthly gain in private employment as measured in the ADP National Employment Report. This pick-up is consistent with the recent acceleration of the nation's Gross Domestic Product which, in the fourth quarter, grew at 2.8 percent -- the fastest pace since second quarter of 2010," Prakken said.
"Other indicators suggest some firming of labor market conditions as well, including the downward trend in unemployment claims, upturns in the components of consumer sentiment and confidence influenced by perceptions about the availability of jobs, and a rising trend in workers voluntary quitting their jobs," Prakken continued.
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