Wednesday, June 30, 2010

ADP Employment Shows Weakness

The WSJ details:

Private-sector jobs in the U.S. increased by 13,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers.

Economists had expected ADP to report a jobs gain of 60,000 for June. The estimated change in employment for May was revised to a gain of 57,000 from an increase of 55,000 first reported.

The ADP survey tallies only private-sector jobs, while the Bureau of Labor Statistics' nonfarm payroll data, to be released Friday, include government workers.

The Census Department had hired hundreds of thousands of temporary workers for the census but began to lay off many of them in June.

As a result, said economists surveyed by Dow Jones Newswires, the BLS will probably report June total payrolls dropped by 110,000, following a jump of 431,000 in May. Among those economists forecasting private-sector jobs within the BLS data, the median projection is for a gain of 110,000.

Source: ADP