Despite Challenger's headlines of a 71% jump in job cuts YoY in May, ADP reported a bigger-than-expected 253k rise in employment for May (above all economist expectations) after a big plunge in April.
May saw the biggest YoY jump in job cuts since September 2015…
But ADP reports a massive surge in employment.
Services jobs outpaced goods-producing jobs once again (+205k vs +48k) with medium-sized business seeing the biggest jump.
From the report:
“May proved to be a very strong month for job growth,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries.”
Mark Zandi, chief economist of Moody’s Analytics said, “Job growth is rip-roaring. The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number one challenge will be a shortage of labor.”
Which is not at all what he predicted before Trump won the election.
Meanwhile, Citi quickly poured some cold water on the report, saying "ADP bests consensus but…"
This is the type of ADP prints that traders get excited about. The headline rise of 253k blasts 180k expected, with 205k from service producing jobs and 48k from goods. US 10y yields have shot up 1.5bps towars 2.23% on the print, while USDJPY trades higher from the 111.15 area to 111.40.
While this move is decent, the risk is that it proves short-lived and as we type, there's evidence that it will. More jobs are great but remember that the market is looking for more money – via a higher Average Hourly Earnings (AHE) print – on Friday. AHE is currently expected to rise 0.2%MoM or 2.6%YoY, while NFP (likely to be revised up following ADP) is seen at 173k.
can i add to ADP
Some more details:
Change in Nonfarm Private Employment
Change in Total Nonfarm Private Employment
Change in Total Nonfarm Private Employment by Company Size
Full infographic:
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Citi notes that this is the type of ADP prints that traders get excited about. The headline rise of 253k blasts 180k expected, with 205k from service producing jobs and 48k from goods. US 10y yields have shot up 1.5bps towars 2.23% on the print, while USDJPY trades higher from the 111.15 area to 111.40.
While this move is decent, the risk is that it proves short-lived and as we type, there's evidence that it will. More jobs are great but remember that the market is looking for more money – via a higher Average Hourly Earnings (AHE) print – on Friday. AHE is currently expected to rise 0.2%MoM or 2.6%YoY, while NFP (likely to be revised up following ADP) is seen at 173k.
via http://ift.tt/2qEx1Uq Tyler Durden