ADP's 27,000 jobs added in ADP's private sector payrolls but economists still expect Friday's government jobs report to .
ADP's surprisingly weak addition of 27,000 private sector payrolls in May may be overstating economic weakness in May, just as it overstated strength in the job market in April.Economists say while the soft ADP number is an anomaly, they do expect the job market is actually weakening and will get even softer if President Donald Trump moves forward with tariffs.
Zandi said ADP's weak May data showing just 27,000 jobs added could have been skewed by the sharp drop in unemployment claims in April to a 50-year low, which was followed by a quick bounce back. Just as it created an unusual dip in ADP's May jobs forecast, the fluctuation in weekly claims data, at 271,000 jobs. The actual government report in April was 263,000.
"Last month, [ADP] overstated the strength. This month it overstated the weakness. The reality is job growth is slowing, notably slowing but in the scheme of things, it's still strong. I would take an average for the two months, and that would be 150,000 on the nose, and that's where we are—150,000," said Zandi. "That's well bell below last year's 225,000, but it's still above the 100,000 needed to sustain stable employment.
Michael Gapen, chief U.S. economist at Barclays, said he sees the ADP report as an anomaly, and he expects May's nonfarm payrolls to increase by 175,000. However, Gapen also foresees slowing job growth and a weakening economy, which he expects will force the Fed to cut interest rates by 75 basis point this year.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Job growth screeches to a near halt in May, with private payrolls up just 27,000Companies added just 27,000 new positions during the month, according to a report from payroll processing firm ADP and Moody's Analytics that was well below Dow Jones estimates of 173,000.
Weiterlesen »
Unveiling 'wellbeing' budget, New Zealand earmarks $2.5 billion spending in slowing economyNew Zealand on Thursday unveiled a $2.5-billion spending package under a much-hy...
Weiterlesen »
U.S. economy accelerates in Q1, but momentum slowingU.S. economic growth accelerated in the first quarter, but inflation pressures w...
Weiterlesen »
Fed policymakers promise response if U.S. economy slowsSigns that the economy is losing momentum hung over a Federal Reserve summit for...
Weiterlesen »
This under-the-radar freight indicator is raising concerns that the US economy is slowingA drop in the Cass Freight Index, a relatively under-the-radar indicator, is causing some to worry about a slowdown elsewhere in the U.S. economy.
Weiterlesen »
Behavioral Ad Targeting Not Paying Off for Publishers, Study SuggestsIn one of the first empirical studies of the impacts of behaviorally targeted advertising on online publishers’ revenue, researchers at three universities suggest publishers only get about 4% more revenue for an ad impression that has a cookie enabled than for one that doesn’t.
Weiterlesen »
UK private sector reports sluggish underlying growth: CBIBritain's private sector reported sluggish underlying growth last month as ...
Weiterlesen »
Economies and stockmarkets do not always match up wellWith countries, classifying development mostly comes down to income level. But the criteria are different for financial markets
Weiterlesen »