ADP Employment data was released Wednesday morning and failed to impress the market. The number of new jobs estimated to have been created in November was 208,000. This, of course, will be revised the next two months and if current trends hold it will be revised higher. The November number is slightly below expectations but remains steady above 200K. This is the critical level which signifies underlying strength in the labor market, at least according to some economists.
The gains were led by services and small business but broad none the less. Small business accounted for 101,000 new jobs, Services totaled 176,000. Alongside the services sector there were also gains in Trades, Transportation, Utilities, Construction and Manufacturing. Although not as strong as some would like, this month’s ADP report upholds current economic and labor trends which have been steadily gaining momentum in recent months.
Other data, scheduled to be released later this week, is expected to show the same. Job cuts, jobless claims, US Non-Farm Payrolls (NFP), and the US unemployment rates are all expected to hold steady. Current estimates call for NFP to come in around 260,000 but may be less based on the ADP report today. The two generally track each other over the long term but are known to deviate, sometimes sharply, in the short term. Total unemployment is expected to remain near 5.8%, with current expectations into next year much lower.
The market did not jump for joy on the news, but it was enough to support prices. The current trend is up and that is what the economic news today has shown. Traders are cautious going into December and the end of the year, but so far the data supports the trend. Not only are the economics rising, the consumer is also spending money which has been reflected in early reports of early holiday sales.
#####
For more information from Binary Market Analysis, click here.
