Posted on 08/04/2010 6:52:44 AM PDT by SeekAndFind
Private sector employment rose slightly more than expected in July, easing some concerns about labor market weakness ahead of a key government jobs report later this week.
Private employers added 42,000 jobs in July, compared with a revised gain of 19,000 in June, the report by a payrolls processor ADP Employer Services showed on Wednesday.
The rise in hiring was slightly higher than an estimate from economists surveyed by Reuters for a gain of 40,000 private-sector jobs. The June ADP figure originally was reported as a gain of 13,000 jobs.
However, while above market expectations the gains still show the economy has not gained the job-creating momentum to pull the unemployment rate down from above nine percent.
"The fact that it was better than expected is a good sign, but it's more of the same of what we're seeing in the jobs market. The recovery remains slow, and its something that's going to take longer to play out," said Michael O'Rourke, chief market strategist at BTIG LLC in New York.
U.S. stock futures added to gains following the private sector jobs data, while longer-dated U.S. Treasury debt prices briefly pared gains and the U.S. dollar pared losses against the yen.
Employment levels are considered key to a pickup in consumer spending and to boosting overall U.S. economic growth which has shown signs of weakness in recent months. Data last Friday showed U.S. economic growth slowed in the second quarter of this year.
Economists sometimes use the ADP report to narrow down their estimates for the U.S. Labor Department's payrolls numbers due Friday, but it is not always accurate in predicting the outcome.
(Excerpt) Read more at reuters.com ...
Woo-hoo! Party time! Excellent!
42,000 added, yet each week 450,000 apply for unemployment for the first time. The 42,000 will be adjusted down to 14,000 in coming weeks!
Couple that with the double-counting of “jobs saved or created,” and we can expect 0bama to run to the microphones Friday trumpeting 5,000,000 new jobs because of his stimulus program
Wait. REVISED gain in June? What was the original gain?
And when does the REVISED July numbers come out?
ACORN opened a new branch in another name.
“REUTERS TELLS US THAT IT IS BETTER THAN EXPECTED”
That’s all they can say since in absolute terms, it’s bad news. The economy needs to add 100,000 jobs a month just to keep up with increases in the size of the labor force. Thus, while 42,000 found jobs, that means 58,000 new labor force entrants (e.g., college grads) couldn’t find employment, hence this didn’t help the unemployment rate.
It’s like capturing 42% of the oil spill: it’s better than capturing only 30%, but if there’s still 58% leaking out, this simply adds to the pool of oil already spilled.
When you continually lay off and rehire census workers you can post a gain every month.
Winner! It is all so obvious.
42,000 jobs is pretty pitiful. You need something like 125,000 - 150,000 just to stay even when you take into account population growth.
Actually shouldn’t the unemployment rate go up because a gain of 42,000 jobs a month isn’t enough to cover the natural increase in our population?
WINNER WINNER CHICKEN DINNER!!! PLUS ACORN opened a new nutty branch of buildings.
RE: 42,000 jobs is pretty pitiful. You need something like 125,000 - 150,000 just to stay even when you take into account population growth.
Obama supporters acknowledge that it is small, but their argument is — IT’s A START. And then they paraphrase the Great Helmsman himself : “We have to begin with a single step”
Racists.
RE: Actually shouldn’t the unemployment rate go up because a gain of 42,000 jobs a month isn’t enough to cover the natural increase in our population?
I believe the “official” ( note the quotes ) unemployment rate will be announced on August 6. The last time it was officially announced, it was 9.5%. WE SHALL SEE....
Democrats keep saying that there was a net loss of jobs during the “Bush eight years.”
Yet I remember “We are hiring” signs all over the place during those times.
What’s the truth - were there jobs created during the Bush years - how many - where did they go?
Where do the dems get this “net loss” stuff and why don’t the Republicans deny it?
However, a pre release of the jobless rate shows it going back up to a phony 9.6 from the phony 9.5 it is today.
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