The ADP National Employment report missed the mark on Wednesday causing some to wonder if the economic recovery is already slowing… (ADP Report)
- National employment was up 330,000 in July led by Midsize businesses that created 132,000 jobs followed by large businesses (+106,000) and small-business (+91k).
- Forecasts had expected the report to show the creation of 695,000 jobs in July.
NOTE: Leausire and hospitality led the way creating 139,000 jobs followed by education & health (+64k) and professional & business (+54k).
Why some are worried? ADP tends to be more optimistic than the monthly jobs report from the Bureau of Labor Statistics. If ADP misses this big, what could happen on Friday?
- For example, the May ADP reported 978,000 jobs created in April while the monthly report showed only 226,000.
SILVER LINING: Not a lot of optimism from anyone on this report. However, I did see one silver lining. Jeroen Blokland, of True Insights, said maybe this means no tapering anytime soon.
- “A big miss on ADP #payrolls! US economy created 330K jobs in July, against 690K expected. This reduces the odds of a formal tapering announcement any time soon.”
COMING UP: All eyes will be on the initial jobless claims Thursday and the big jobs report on Friday. Let’s hope ADP Was a fluke and not a sign of things to come.