Private sector job growth rebounds to ‘rip-roaring’ pace in May, ADP says

[The Nature Boy 7,659]

http://www.marketwatch.com/story/private-sector-job-growth-rebounds-to-rip-roaring-pace-in-may-adp-says-2017-06-01

[Dashinka 24,514]

You know you can't post anything at all positive here in CEHST.  It is a clear indicator you are not smoking some sort of illicit substance.

 

 

[The Nature Boy 7,659]

It does not fit the MDL narrative. Nothing to see here 

[IAMX 3,055]

1 minute ago, Nature Boy Flair said:

It does not fit the MDL narrative. Nothing to see here 

Economy is something less subjective. The left are still in tantrum mode, so it requires the most subjective (and most attention-getting) outbursts to vent their little frustrations on about.

[Dashinka 24,514]

1 hour ago, IAMX said:

Economy is something less subjective. The left are still in tantrum mode, so it requires the most subjective (and most attention-getting) outbursts to vent their little frustrations on about.

You mean critical thinking skills?

 

[OriZ 3,157]

And here's why I learned about 10 years ago that the ADP report is not reliable and not to be trusted until the Friday nonfarm figures:

 

Weak May jobs growth raises doubts about how much Fed can raise interest rates this year

• May's job growth amounted to just 138,000, versus expectations for 185,000.
• The Fed has forecast two more rate hikes this year, but the market doubts the central bank can now hike more than one more time in June, as expected.
• The weak jobs number raises the question of whether soft job growth is a sign of an economic slowdown or labor market tightness.

 

 

 

May's weak hiring and sluggish wage growth should not deter the Federal Reserve from raising interest rates in June, but it puts any further hikes this year in doubt.

There were 138,00 nonfarm payrolls added in May, and average hourly wages rose just 2.5 percent on an annual basis. The unemployment rate fell to 4.3 percent from 4.4 percent, viewed as a negative since the number of people participating in the workforce also declined.

Stock futures gave back gains after the report but reversed losses after opening lower and rose to new highs. Economists had expected job growth of 185,000, and some had raised their forecasts Thursday after ADP reported 253,000 private sector payrolls were added in May. Bond yields fell to their lows of the year, with the 10-year yield at 2.15 percent. Yields move lower when prices move higher.

 

"While the Fed still struggles to go in June, the one big takeaway from this report is that a September rate hike is largely off the table. September was always going to be a struggle because of its proximity to the debt ceiling debate," said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets.

There were also major revisions to March and April payrolls, with a total of 66,000 fewer jobs reported for those months, taking the three-month average to just 121,000.

"It is weaker than the rate we had in 2016, and certainly the first three months of this year. There is a notable shift there. The last three months average of 121,000 ... I think they'd have to go back a while to find a trailing three months that weak," said Ron Sanchez, chief investment officer at Fiduciary Trust.

 

http://www.cnbc.com/2017/06/02/weak-may-jobs-growth-raises-doubts-about-how-much-fed-can-raise-interest-rates-this-year.html

 

Sorry to keep being the party pooper, but my expectation is to see about zero net employment growth over the next 4 years, with potential severe employment loss in the interim.

Edited June 3, 2017 by OriZ