Job growth stronger in year to March than first thought

WASHINGTON, Thu Sep 27, 2012 – The U.S. economy likely created 386,000 more jobs in the 12 months through March than previously estimated, the Labor Department said on Thursday in a preliminary estimate of its annual “benchmark” revision to closely watched payrolls data.

Once a year, the department compares its non-farm payroll data, based on monthly surveys of a sample of employers, with a much more complete database of unemployment insurance tax reports.

It said its latest comparison suggests the level of employment in March was 0.3 percent higher than it had previously stated.

A final benchmark revision will be released in February along with the department’s report on employment in January. Government statisticians will use the final benchmark count to revise payroll data for months both prior to and after March.

A breakdown by industry sector showed 453,000 more total private sector jobs were created than initially thought, including 145,000 more jobs in the trade, transportation, and utilities category, plus 85,000 more in construction.

In contrast, the benchmark revision lowered the estimate for job creation in the government sector by 65,000, while it found that 25,000 fewer manufacturing jobs had been generated over the 12 month period than previously thought.

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.

Starbucks helps start fund to stimulate U.S. job creation

SEATTLE ― Starbucks Corp. CEO Howard Schultz, decrying a lack of leadership in Washington, said his coffee store chain is helping launch a nationwide fund designed to stimulate U.S. job creation.

Starbucks on Monday introduced the “Create Jobs for USA” fund in partnership with Opportunity Finance Network, a group of private financial institutions that provide affordable loans to low-income people.

Schultz called small business an engine for job growth that has stalled and said small entrepreneurs must have access to credit so they can hire again.

“Businesses and business leaders need to do more, we can’t wait for Washington,” Schultz told Reuters in an interview, adding that Americans deserve better leadership.

The founder and chief executive of Starbucks created a political stir in August when he called on business leaders to withhold campaign donations to the president and members of Congress until a “fair, bipartisan” deal on the country’s debt, revenue and spending was reached.

Schultz said he has been frustrated by political dysfunction in Washington and called on people in positions of power to “put their feet in the shoes of people who are being left behind.”

Labor figures due on Oct. 7 are likely to show the unemployment rate stuck at 9.1 percent in September despite near-zero interest rates. Some 30 percent of the jobless have been out of work for at least a year.

While he has inserted himself into the national political debate, Schultz said he has no political ambitions.

“I have no interest in politics or political office. I’m just doing this as a private citizen trying to make a difference,” he said.

Starbucks said every $5 donation to “Create Jobs for USA” will generate $35 in financing for local businesses. The fund will be seeded with a $5 million donation from the Starbucks Foundation.

Moody’s Analytics Chief Economist Mark Zandi said the fund will be helpful to small businesses having difficulty securing loans in a tough economic climate.

As of Nov. 1, the fund will accept donations online and at 6,800 U.S. Starbucks cafes. Donors who give $5 or more will get a wristband inscribed with the word “Indivisible.”

Starbucks will cover Opportunity Finance Network’s administrative costs and pay for the wristbands.

Starbucks has about 107,000 U.S. employees, according to its most recent annual report.