Once again, with a thud, a report on the state of jobs in America breaks our hearts and makes those dark clouds even darker. The ADP is in and it's just one of those things that make you shrug your shoulders with disbelief. The key is whether that disbelief is limited to policies that have us mired in this situation, or to our economic system, which continues to come under assault. Of course, it doesn't help when the person driving that system is wrecking it on purpose.
It's sort of like a used car salesman driving your car into a ditch, but telling you don't worry because he's got something better sitting on the lot anyway, and it's only been driven by a widow on Sundays.
The government number could be a lot different from ADP, but this isn't a report to dismiss out of hand. There were couple bright spots, but for the most part, the economy is still in search of a spark- I think it has to come from people looking for work and the administration calling off war on success. I know the new healthcare law will not be replaced, but even if there is a friendlier tone, that would help.
By Jennifer Coombs, Research Analyst
Equity futures are expected to start the morning in the red. There was a lot of economic data already released this morning, but there is still more to come. Many things can happen between now and the end of the day to change how the equity futures perform. However, the ADP Employment reading should give the best temperature gauge for the jobs report this Friday.
The ADP Non-Farm Employment reading reported a change of 179,000 jobs added in May, which fell substantially below consensus' expectation of a 200,000 increase and a revised reading of 215,000 (from 220,000) in April. The goods-producing segment, or the major driver of industrial growth, added 29,000 jobs in May which was up from the 21,000 gained in April. However, service-providing employment rose by 150,000 jobs in May, but was much lower than the 194,000 jobs added in April. The report ultimately indicates that professional and business services contributed the most to the decline in the number of jobs added for the month, but there looks to be an expansion in trade, transportation and utilities.