Today’s ADP Employment report estimates private pyrolls grew by 216,000 last month. That’s a big jump from last month’s upwardly revised 173,000 (24.9% increase).
The better news is that the government’s Employment Situation Report has been regularly coming in even stronger than what ADP has been forecasting (the Bureau of Labor Statistics last month said private payrolls grew by 257,000, well above ADP’s estimate at the time of ‘just’ 170,000), possibly paving the way for another upside jobs surprise on Friday.
And that’s exactly what the market needs to see to keep the stock market’s rally on track and to underscore that the economy (particularly labor) is on track as well.
One thing is clear so far, the jobs market is definitely on the upswing. But an uptrend needs continuously higher readings to keep that going. Let’s hope that trend continues on Friday.
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