ADP Report Prepares Analysts for Fridayby Tim Manni
Declines in nonfarm private employment exceeded economists’ expectations, dropping 693,000 from November to December, according to the ADP.
According to the ADP, “December’s ADP Report estimates nonfarm private employment in the service-providing sector fell by 473,000. Employment in the goods-producing sector declined 220,000, the twenty-third consecutive monthly decline. Employment in the manufacturing sector declined 120,000, marking its twenty seventh decline over the last twenty eight months.”
Unemployment among small and medium-sized business outnumbered jobs lost at large businesses by nearly five times. According to the ADP, that’s proof that unemployment has spread “well beyond” both the manufacturing and housing industries.
If the ADP’s report is an accurate precursor to the government’s report, we can expect another dire-monthly report, likely to exceed experts’ expectations. Keep an eye out for the unemployment trends spreading out to several sectors of the job market.