ADP: +32k Jobs In April, Initial Rate Decline Reaction Now Reversing. Official BLS Jobs Report Friday.
Today, ADP, a provider of payroll services to 22 million Americans employed in the private sector, released their monthly jobs data which showed that the economy gained 32k jobs in April; these numbers don’t include 2010 Census hiring. Expectations called for a gain of 30k jobs, and bond markets initially rallied on the news, pushing rates slightly lower. But as the trading day has continued, bonds have reversed and rates are now net even from yesterday—it’s still been a favorable week for mortgage bonds and rates because investors have sought safety of mortgage (and Treasury) bonds as the European debt crisis has played out. The market sentiment is holding that Friday’s official BLS jobs report will come in with about 175k-190k jobs gained, and this number will include Census hiring. This improving economic sentiment would cause bonds to sell off, which pushes rates higher.
You can view previous months of both reports by clicking the ADP and BLS tags below, and you can also scroll to our data section to review current and historical jobs data. Additional ADP April Jobs Report Data is below…
The estimated change in the ADP employment report from February to March 2010 was revised up, from a decline of 23,000 to an increase of 19,000. Also the revised estimate of the monthly change in employment from January to February 2010 shows a modest increase of 3,000. Thus, employment has increased for three straight months, albeit only modestly.
April’s ADP Report estimates nonfarm private employment in the service-providing sector rose by 50,000, the third consecutive monthly increase. Employment in the goods-producing sector declined 18,000 during April. However, while construction employment dropped 49,000, manufacturing employment, in an encouraging sign, rose 29,000, the third consecutive monthly increase.
Large businesses, defined as those with 500 or more workers, saw employment increase by 14,000 and employment among medium-size businesses, defined as those with between 50 and 499 workers increased by 17,000. Employment among small-size businesses, defined as those with fewer than 50 workers, increased by 1,000 in April.*
In April, construction employment dropped 49,000. This was moderately higher than last month’s decline of 38,000. This was the thirty-ninth consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 2,159,000. Employment in the financial services sector dropped 14,000, resulting in over three years of consecutive monthly declines.