May 5, 2010
The ADP report is drawn from the payrolls the company processes for several hundred thousand U.S. clients. ADPs partner Macroeconomic Advisers handles the statistical analysis.
Today’s ADP employment report showed that the private sector added jobs for the third month in a row. The 32,000 jobs added in April was in line with what economists expected, while the report itself is expected to foreshadow an even more up-beat jobs report coming Friday from the federal government.
The U.S. Bureau of Labor Statistics is expected by economists to show the U.S. economy grew anywhere from about 180,000 to 189,000 jobs in April. If so, that would be the biggest gain since Nov. 2007. In March, the economy added 162,000 jobs, a number the BLS is likely to revise when the April numbers are released in two days.
The ADP report estimated that 50,000 jobs were added to the service sector, while manufacturing added 29,000. Nearly all the new jobs came from companies larger than 50 employees.
“The slow pace of improvement from February through April is consistent with the pause in the decline of initial unemployment claims that occurred during the winter months,” explained Joel Prakken, chairman of Macroeconomic Advisers, LLC.
Investors in the U.S. will probably view these figures from the private sector as an encouraging sign of recovery which seems to be gaining momentum, but the anticipated jobs report will be the highlight of the week. However, challenges still persist in the economy, where the major concerns that continue to suppress economic activities in the U.S. are elevated unemployment and tight credit conditions. Also helping build confidence that the economy is improving was the Consumer Confidence Index report last week, which jumped more than 5 points. It now stands at 57.9, more than 18 points above where it was in April of last year.
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