All articles tagged with #adp jobs report
The ADP jobs report showed an unexpected decline of 32,000 private-sector jobs in November, raising questions about the labor market amid the government shutdown, and supporting the case for a Federal Reserve rate cut. Despite the report, markets remain optimistic about a rate cut, with the S&P 500 slightly lower after initial gains, and the official government jobs report delayed until mid-December.
The U.S. labor market shows signs of weakening as the government shutdown ends, with ADP data indicating a contraction in private-sector jobs in late October and a lack of consistent job growth, raising concerns about the overall economic recovery and influencing Federal Reserve decisions.
Federal Reserve Governor Stephen Miran views the recent increase in US private-sector jobs as a positive surprise and advocates for lower interest rates, citing the current restrictive policy as risky, amid moderating wages and labor demand.
The 10-year U.S. Treasury yield increased despite weak ADP jobs data, as investors weighed the impact of Trump's tax bill and upcoming economic reports, with market volatility expected to continue amid political and trade negotiations.
President Trump urged Federal Reserve Chair Jerome Powell to lower interest rates following a weak ADP jobs report, criticizing Powell for not acting sooner and highlighting ongoing tensions between the White House and the Fed over monetary policy.
The ADP Jobs Report indicates a slowdown in private-sector hiring, with 146,000 jobs added last month, down from 188,000 in October, suggesting a cooling labor market. This slowdown, coupled with wage growth for job stayers and a decrease in the wage premium for job changers, strengthens the case for a potential Federal Reserve interest rate cut in December. Despite mixed industry performance, stock futures rose following the report, while Treasury yields remained steady. The Labor Department's upcoming nonfarm payrolls report will be closely watched for further insights.
The ADP jobs report for August showed an increase of 177,000 jobs, falling short of the expected 200,000 and a significant drop from July's revised figure of 371,000. Annual pay growth also slowed to 5.9% from 6.2% in July. The report suggests a shift towards more sustainable job and pay growth as the economy recovers from the pandemic, with the service sector leading job gains and manufacturing adding 12,000 jobs.