Wednesday, November 3, 2010

ADP - More Evidence of Stability

U.S. companies added to payrolls more than expected in October, slightly boosting optimism about the job market ahead of Friday's government employment report.

U.S. private employers added 43,000 jobs in October compared with a revised loss of 2,000 jobs in September, payrolls processor ADP Employer Services, which developed the report with Macroeconomic Advisers LLC, said on Wednesday. The September figure was originally reported as a loss of 39,000.  The October number came in well above expectations for a rise of 20,000 private-sector jobs, based on a median of estimates from 35 economists surveyed by Reuters.


Separate data on Wednesday showed the number of planned layoffs at U.S. firms rose slightly in October, but the overall pace of downsizing for the year is down 62 percent from last year, a report said on Wednesday. Employers announced 37,986 planned job cuts in October, up 2.2 percent from 37,151 cuts in September, according to the report from consultants Challenger, Gray & Christmas, Inc.

It is beginning to look like we have actually turned the corner on jobs.  While it is en vogue to look for holes and attribute biases and skews, we are seeing the tide turn.  This should ultimately help justify the current level of the domestic equity markets and help the credit markets keep from backing off in a significant way (credit risk, not systemic duration risk).

No comments:

Post a Comment

About Me

A student of the markets that has held portfolio management, analysis and trading positions for over 15 years.