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Paucity of Positions: ADP data today shows fewest new jobs added in May since 2010

Jun 05, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • ADP data out today shows the US added just 27,000 new private-sector jobs in May coming well below 185,00 expected for May
  • This reading is the lowest ADP private job additions data since mid-2010
    • Construction jobs dropped by 36,000, the worst reading since 2010
    • Firms with less than 50 employees dropped by 52,000, also the worst since 2010
    • Manufacturing and natural resources also posted losses
    • Service providers added 71,000 jobs
    • Large companies (over 500 employees) added 68,000 jobs

ADP Private Jobs Additions Report, 10 Years

adp jobs report 10 years

Source: Bloomberg

 

  • The weak ADP jobs data come the day after Fed President Powell suggested he is open to rate cuts if needed
  • The weak ADP jobs data raises questions what may come on Friday when the Labor Department reports, leading many to already expect a weaker report
  • The weak data today, added to other recent weak data points, fuels the belief that a Fed rate cut may be in the cards at a point sooner than originally anticipated
  • Read more on Powell comments: Powell Power! Fed President open to interest rate cut if warranted amid growing trade tensions

 

 

 

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