Private sector adds 192,000 jobs in January: ADP

NEW YORK, Wed Jan 30, 2013 — Private employers added 192,000 jobs in January, more than economists were expecting, in a sign of growth in the labor market, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 165,000 jobs. December’s private payrolls were revised down to an increase of 185,000 from the previously reported 215,000.

The report is jointly developed with Moody’s Analytics.

Private sector adds 163,000 jobs in July: ADP

NEW YORK, Wed Aug 1, 2012 – The pace of job creation by private employers slowed modestly in July to 163,000 new jobs, though the gain still topped economists’ expectations, a report by a payrolls processor showed on Wednesday.
The figure from the ADP National Employment Report came in well above forecasts for 120,000 jobs, but was down from June’s 172,000 jobs. June was originally reported as 176,000.
The report is jointly developed with Macroeconomic Advisers LLC.
Stock index futures held gains immediately after the data, while Treasuries extended losses and the euro fell against the dollar.
“This is another resilient outcome. It does show that things are chugging along and this is pretty respectable,” said Sean Incremona, economist at 4Cast Ltd in New York.
The ADP figures come ahead of the government’s much more comprehensive labor market report on Friday, which includes both public and private sector employment.
That report is expected to show nonfarm payrolls rose by a modest 100,000 last month, while the unemployment rate is seen staying the same at 8.2 percent.
“The diversion between nonfarm payrolls is quite worrying and this could do something to lift expectations if it’s not distorted by things like initial claims, which were volatile throughout the month,” Incremona said.
Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome.

ADP, Paychex to be hit by slow job growth: Barclays

Mon Jun 25, 2012 – Payroll processors Automatic Data Processing Inc. and Paychex Inc. may see slower earnings growth over the next two years because of low interest rates and weak job market recovery, Barclays Capital said, downgrading the stocks.

Both companies could see only moderate core payroll revenue growth given the weak jobs growth, while persistently low interest rates will hurt their float income — interest earned on funds held for clients, Barclays said.

Barclays, which is less optimistic on Paychex, cut its rating on the stock to “underweight” from “equal weight.” It downgraded ADP to “equal weight” from “overweight.”

Earnings growth at ADP is unlikely to return to consistent double digit levels until the economy grows more rapidly and interest rates rise, the brokerage said.

U.S. job growth braked sharply for a third straight month in May, and the unemployment rate climbed for the first time in nearly a year, raising chances of further monetary stimulus from the Federal Reserve to support the sputtering recovery.

Barclays prefers ADP over Paychex, as it expects ADP’s more diversified offerings and aggressive product development investments to yield faster growth.

The brokerage, however, upgraded Iron Mountain to “overweight” rating, saying the document storage company’s planned transformation into a real estate investment trust is likely to prove successful and give a sharp boost to its share price over the next two years.

Private sector adds 91,000 jobs in August, ADP report says

NEW YORK ― The pace of U.S. private sector job growth slowed in August for the second month in a row with employers adding 91,000 positions, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 100,000 jobs. July’s private payrolls were revised down to an increase of 109,000 from the previously reported 114,000.

August’s gain was the smallest number of private jobs added since May’s disappointingly small reading of 35,000.

The ADP figures come ahead of the U.S. government’s much more comprehensive labor market report on Friday, which includes both public and private sector employment.

Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it can be erratic in predicting the outcome.

“I don’t think this was a bad number, and I don’t think it changes people’s forecasts for Friday’s employment number. A small miss is not the end of the world, and we all know ADP can be unreliable, though it’s been better lately,” said Steven Butler, director of FX trading at Scotia Capital in Toronto.

The jobs report at the end of the week is expected to show a rise in overall nonfarm payrolls of 75,000 in August, based on a Reuters poll of analysts, and a rise in private payrolls of 105,000.

Government payrolls are expected to shrink for the ninth month in a row, but the decline may not be as steep as in the past three months since 23,000 state workers in Minnesota returned to the job after a partial government shutdown.

A strike by about 45,000 Verizon Communications Inc employees is also expected to put a dent in Friday’s numbers. Neither factor affects the ADP report and Macroeconomic Advisers LLC Chairman Joel Prakken said that could cause nonfarm payrolls to be a good deal weaker than indicated by Wednesday’s data.

While fears the economy is falling back into recession have increased this month, some of the recent data has been consistent with a slow-growth scenario rather than a contraction.

Slower than expected economic growth has fueled speculation the Federal Reserve could launch another round of bond buying — known as quantitative easing — but such a move would likely face political opposition both domestically and abroad.Markets saw little impact from the data. Wall Street opened higher open as comments from Fed officials boosted hopes of more monetary stimulus.

A separate report earlier on Wednesday showed the number of planned layoffs at U.S. firms declined in August after rising for three months in a row, but the cuts were still up sharply from a year ago amid government job losses.

Employers announced 51,114 planned job cuts, down 23 percent from 66,414 in July, according to the report from consultants Challenger, Gray & Christmas, Inc. July’s figure had been a 16-month high.

But August’s job cuts jumped compared to a year ago, rising 47 percent from 34,768. Cuts at the federal government level led the way and more are expected to come with the United States under pressure to cut federal budgets, the report said.