ADP Employment: Another Solid Increase
April 5, 2017
Bottom Line: While prior months were revised lower, March ADP payrolls rose sharply more than expected. ADP data do not account for government workers which are included in the Employment Situation headline number. This report would suggest upside risk to the consensus for non-farm payroll growth to be reported Friday. According to ADP's data there were especially strong gains in service producing industries and in small-sized firms.
ADP National Employment ROSE by 264k in March, compared with market expectations for a gains of 185k. Meanwhile, the revisions to the prior 3 months subtracted 46k to the previous estimate. Over the past 12 months, private payrolls have increased by an average of 190k per month, lifting employment to 1.9% ABOVE its year ago level.
Jobs in Goods-Producing Industries ROSE by 82k jobs but Manufacturing gained 30k workers. Moreover, Construction gained 49k jobs.
Meanwhile, Service-Producing Industries ROSE by 181k jobs with Professional/Business Services hiring 57k workers,
Trade/Transport/Utilities adding 34k, and Financial Activities increasing by 25k workers. Small Firms hired 118k workers, Medium-Sized Firms grew by 100k employees while Large Firms added 45k positions.
Article by Contingent Macro Advisors