ADP Employer Services Says the U.S. Added 40,000 Jobs in May

Discussion in 'Economics' started by ASusilovic, Jun 4, 2008.

  1. Companies in the U.S. unexpectedly added jobs in May by the most since January, a private report based on payroll data showed today.

    The 40,000 increase followed a revised gain of 13,000 for the prior month that was more than previously estimated, the report from ADP Employer Services showed.

    The figures are a sign overseas orders are allowing firms to retain workers even as the prolonged housing slump and rising energy prices slow demand at home. The economy, which has lost jobs for four straight months, may post another drop in payrolls for May, the median forecast in a Bloomberg News survey shows.

    ``The labor market is holding up reasonably well,'' Mark Vitner, senior economist at Wachovia Corp. in Charlotte, North Carolina, said before the report. ``Businesses really didn't hire a lot more when demand was strong and they haven't had much need to slash jobs.''

    The ADP report was forecast to show a decline of 30,000, after a gain of 10,000 in April, according to the median estimate of 25 economists surveyed by Bloomberg News. Estimates ranged from a drop of 95,000 to an increase of 25,000.

    ADP includes only private employment and does not take into account hiring by government agencies. Macroeconomic Advisers LLC in St. Louis produces the report jointly with ADP.

    The Labor Department on June 6 may show the overall U.S. economy lost 60,000 jobs in May, the fifth straight month of declines, according to the median estimate of 78 economists in a Bloomberg News survey.
  2. 50_Bip


    Too bad these ADP reports are never EVEN REMOTELY CLOSE to the actual numbers. Why do people put so much stock into these ADP releases?
  3. most people don't.
  4. 40,000 jobs were added in May

    What TYPE OF JOBS?

    I-banking jobs at bulge bracket investment banks

    Or Walmart jobs
  5. The BLS/government jobs report ain't much better. It has a sampling error of +/- 100,000 jobs on each release, yet every 5k change is scrutinized.
  6. True, but the ADP numbers are notoriously ridiculous.
  7. Too bad these newly reported jobs were ex-white collar workers who had recently taken positions vacated by illegal gotta do what you gotta do to keep the house after a nasty ARM reset. :D
  8. My understanding is that they don't report what employers do. Instead, they are trying to guess what the BLS will say. That includes the birth/death adjustment that the BLS uses to make everything look good.
  9. Yes, 40,000 recent college grads are now working at Wal-Mart as cashiers.