The ADP National Employment Report was today, Wednesday, showing an increase of 216,000 in the workforce. February’s report showed that employment has continued to GROW in the US economy. Analysts had expected an increase of between 215,000 in employment in February. The results Followed January’s numbers which showed an increase of around 170,000 in employment. The numbers have not moved stock futures much.
These indicators are showing a clear path for the economy to grow in. And the increasing job growth will be an important confidence boost for investors. It shows a revitalising economy in the United States which is vital to stabilise the struggling economies in Europe and in the rest of the world. The recovering economy will cause some worry for the Republican Candidates fresh from their vicious Super Tuesday battle. Obama looks strong on the economy, recovery taking place just as he heads for a general election battle, which should help him prove his achievements to voters.
The ADP report is often seen as a precursor and an indicator of the more important jobs report to be released on Friday by the Labor Department. The ADP numbers are seen to be less accurate than the Labour Department’s results. In January’s numbers the ADP showed gains of 170,000, while the consensus was a rise in 172,000. The numbers may not be the most reliable indicator of actual jobs growth but they can be used as an early indicator. The ADP report provides a framework to help forecast the results that will appear on Friday. At this stage unemployment is set to stick at 8.3%. Unemployment is one of the key indicators in an economy recovering from recession. This report will be cited many times as evidence of more specific predictions in Friday’s report.
The ADP employment report is compiled from it own records on payroll data. The analysis and reporting is mostly done by Macroeconomic Advisers. The set is a sample size of around four hundred thousand businesses and 24 million employees. The data is analyzed in a way similar to the US Bureau of Labour Statistics treatment of their own data and is used to compute monthly employment. The ADP report only includes private sector industries, displaying no information for government workers in its current form. The next release of an ADP Employment Report will take place on the fourth of April and will cover the month of March.