“Job Gains Are Minimal” – ADP Employment Dramatically Misses Expectations In August
Wed, 09/02/2020 – 08:23
Ahead of this Friday’s payroll print, ADP was expected to report a sizable 1 million person improvement in employment in August (a resurgence from the disappointing +167k print in July), but it significantly missed those expectations with a rise of “only” 428k…
Despite soaring ISM manufacturing employment data…
Manufacturing jobs barely budged…
The biggest job gains went to minimum-wage sectors:
“The August job postings demonstrate a slow recovery,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
“Job gains are minimal, and businesses across all sizes and sectors have yet to come close to their pre-COVID-19 employment levels.”
Finally, we note that ADP has massively ‘underperformed’ relative to the official payrolls data in the last two months (after strongly ‘outperforming’ in the three months prior)…
Today’s 428k gain is about a third of what economists expect from BLS on Friday, but we are not sure this additional ‘jobs’ datapoint offers anything but noise ahead of Friday’s print, but that won’t stop the algos from freaking out.
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