A few thoughts about the jobs report from ADP
by Tom on April 1, 2009
in Market Musings
First, it’s an ugly number, the worst that ADP has reported in the last 9 years.
Secondly, it’s a number that has been subject to substantial revisions over the years.
Thirdly, if it is a precursor to Friday’s jobs report, it’s going to show that March was an uglier month than the stock market would lead you to believe.
So what does this mean for the mortgage world? Probably not a huge amount, but I think it’s going to do a couple of things:
- Put some pressure on the stock market and take some steam out of the rally the market has seen.
- Put additional pressure on the financial institutions that are already faltering.
Stay tuned for Friday’s jobs report. it will be a big one. I’ll have more on that later.
Private-sector cuts 742,000 jobs in March, ADP says – MarketWatch
U.S. labor market worsened again in March, as private-sector firms cut 742,000 jobs in March, signaling another terrible employment report on Friday, according to the ADP employment index released Wednesday.
It was the largest job loss recorded by ADP in its nine-year history.
The report comes two days before the Labor Department reports its estimate for nonfarm payrolls. Economists were looking for nonfarm payrolls to fall by 663,000.
In March, the goods-producing sector shed 327,000 jobs, the 27th consecutive decline. Manufacturing lost 206,000 jobs, while construction lost 118,000.
The services sector lost a record 415,000 jobs.
