News on the job front this morning leaned towards the
modestly disappointing side.
Softness in job growth is now apparent. That being said,
adding +119K jobs is in line with a muddle through +2% real GDP
What about the market's expectations? Consensus
forecasted +150K job adds from APD this morning. The same
forecasters expect the Federal government to report a gain of
+135K jobs on Friday. In the face of the miss, major stock
indexes were down this morning before the open.
Service-providing jobs increased by +113,000, the weakest pace
of growth in seven months. Goods-producing employment rose by
+6,000 jobs in April, its slowest pace of growth in seven
In the press release from ADP, Mark Zandi, chief economist of
Moody's Analytics, was given this quote,
"Job growth appears to be slowing in response to very
significant fiscal headwinds. Tax increases and government
spending cuts are beginning to hit the job market. Job growth has
slowed across all industries and most significantly among
companies that employ between 20 and 499 workers."
I do not agree with Mark Zandi's statement.
Globally exposed industry groups are being hurt the
Look at the evidence: In goods production, manufacturers
showed job losses. They are globally exposed. In services, the
globally exposed sector is trade, transport, and utilities. This
industry's April monthly job add number was relatively weak.
Domestically, construction firm employment bounced back, the
finance sector continued to plod along, and profession/business
services added a decent amount of jobs.
Here is the data ADP provided…
Total ADP U.S. Nonfarm Private Employment:
By Company Size:
Small businesses: +50,000 1-50 employees
Medium businesses: +26,000 50-499 employees
Large businesses: +43,000 500-999 employees and 1,000+
+113,000 Service providing
+6,000 Goods producing
+20,000 Professional/business services
+7,000 Financial activities
What was your take on this key report?
Please go ahead and join the debate on Real Time
ISHARS-EAFE (EFA): ETF Research Reports
SPDR-GOLD TRUST (GLD): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
To read this article on Zacks.com click here.