ADP Report: Unreliable Indicator?by Tim Manni
According to a report released today by ADP Employer Services, 79,000 private-sector jobs were slashed in June. Some economists view the ADP report as an indication of the more detailed and reliable Department of Labor employment report to be released tomorrow.
HSH’s Vice President Keith Gumbinger says, “At least at this point, the ADP report is not exactly indicative of the Bureau of Labor Statistics employment report.” Gumbinger noted the current lack of correlation between the two reports.
While ADP reported a revised increase of 20,000 jobs in May, the government’s report announced a decrease of 49,000, beating expectations of a loss of as much as 70,000. The ADP report is based off of payroll data of approximately 24 million employees in every sector of the industrial industry. The report excludes government jobs.