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 fewer-than-expected jobs in November: ADP

NEW YORK, Wed Dec 5, 2012 — Private-sector employers added 118,000 jobs in November, shy of economists’ expectations, 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 125,000 jobs.

October’s private payrolls were revised slightly down to an increase of 157,000 from the previously reported 158,000.

The report is jointly developed with Macroeconomic Advisers LLC.

As unconventional U.S. oil, gas boom, so do jobs: report

WASHINGTON, Tue Oct 23, 2012 – The U.S. oil and gas rush is cutting into jobless numbers, supporting a total of 1.7 million jobs this year, a number that will swell to almost 3 million by 2020, a leading consultant said in a study released on Tuesday.

The report by forecaster IHS Global Insight is part of a series attempting to quantify the impact that booming production of so-called “unconventional” oil and gas has had on the American economy.

Using new technology to blast fossil fuels trapped in shale rock has transformed the U.S. energy sector.

After five years of rapid growth, unconventional oil accounts for about 2 million barrels per day of U.S. production in 2012, IHS said. Total U.S. crude oil production is expected to average 6.3 million barrels per day, according to the Energy Information Administration.

Unconventional oil will outpace conventionally drilled oil by 2015 and reach close to 4.5 million bpd by 2020, representing close to two-thirds of total U.S. crude and condensate production, IHS said.

“At which point do you stop calling this unconventional?” said John Larson, a vice-president at the firm and lead author of the study, in an interview.

“This is going to become the convention.”

Oil, gas and chemical lobby groups helped pay for the study but did not influence its independent, data-driven results, Larson said.

GM to add 1,500 information tech jobs in Michigan

DETROIT, Mon Oct 8, 2012 – General Motors Co. said on Monday it will create 1,500 jobs at a new software development center in Michigan as part of the U.S. automaker’s previously announced plan to shift information technology work back into the company.

GM said it will hire the software developers, database experts, analysts and other IT positions over the next four years for the office in Warren, Michigan. It is the second of four software development centers GM plans to open, following one it announced last month in Austin, Texas.

In July, the Detroit automaker said it would reverse years of outsourcing IT work. GM now outsources about 90 percent of its IT services and provides the rest in-house, but it wants to flip those figures in the next three to five years.

The IT overhaul is spearheaded by GM Chief Information Officer Randy Mott, who outlined the plan to GM’s 1,500 IT employees in June. The former Hewlett-Packard Co executive believes the moves will make GM more efficient and productive.

GM, which has not disclosed the cost or savings of its strategy, plans to cut the automaker’s sprawling list of IT applications by at least 40 percent and move to a more standardized platform. GM will also simplify the way it transmits data.

Private sector adds 162,000 jobs in September: ADP

NEW YORK, Wed Oct 3, 2012 – Companies added 162,000 jobs in September, more than economists expected but still pointing to slow improvement in the labor market, data from a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 143,000 jobs.

The increase in private payrolls in August was revised down to 189,000 from the previously reported 201,000. July’s rise was also revised down, to 156,000 from 173,000.

The report is jointly developed with Macroeconomic Advisers LLC.

“This is consistent with a moderate pace of job growth and we still haven’t made much headway with the losses during the downturn,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“We would like to see growth on the order of 200,000 to 250,000.”

U.S. stock index futures added to gains immediately after the data, while the dollar edged higher against the yen.

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

That report is expected to show job growth improved slightly, with employers adding 113,000 jobs. Private payrolls are seen rising by 130,000.

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.

Tropical Storm Isaac boosts jobless claims

WASHINGTON, Thu Sep 13, 2012 – The number of Americans filing new claims for jobless benefits rose more than expected last week, with several states reporting an increase related to Tropical Storm Isaac.

Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 382,000, the highest in two months, the Labor Department said on Thursday. The prior week’s figure was revised up to show 2,000 more applications than previously reported.

Economists polled by Reuters had forecast claims rising to 370,000 last week.

A Labor Department official said Tropical Storm Isaac, which drenched parts of the country, accounted for about 9,000 of the claims filed last week. The number is unadjusted.

But even accounting for the storm, the report suggested little improvement in the labor market after job growth slowed sharply in August. The four-week moving average for new claims, a better measure of labor market trends, climbed 3,250 to 375,000, the highest since the middle of July.

Employers added 96,000 jobs last month, a step down from July’s 141,000 count. While the unemployment rate dropped to 8.1 percent in August from 8.3 percent, it was because Americans gave up the search for work.

The sluggish labor market is seen prompting the Federal Reserve to announce a third round of bond purchases at the end of a two-day policy meeting later on Thursday.

The unemployment rate has been stuck above 8 percent for more than three years, the first time this has happened since the Great Depression.

Bankrupt Eastman Kodak to cut more jobs

ROCHESTER, N.Y., Mon Sep 10, 2012– Bankrupt Eastman Kodak Co said it will cut 1,000 additional jobs by the end of this year and may cut more as it focuses on its commercial packaging and printing business.

Kodak, which invented the digital camera but had trouble adjusting to the digital age, was betting on an auction of its 1,100 patents to raise funds to repay money borrowed to finance its bankruptcy.

The company, which estimates its patents to be worth between $2.2 billion and $2.6 billion, received only sub-$500 million bids from investor groups, including Apple Inc and Google Inc, according to media reports.

Kodak has declined to comment on the sale and has delayed several times a bankruptcy court hearing during which it would reveal the details of the sale. The hearing on the sale was first set for August 20 and is now scheduled for Sept. 19.

If the sale falls flat, the company will need to find other ways to raise the money to pay creditors as it looks to exit bankruptcy by early 2013.

Kodak’s employee base has shrunk to about 17,100 at the end of last year from about 145,000 during the 1980s.

The company, which at one point employed more than 60,000 people in its hometown Rochester in upstate New York alone, did not disclose where the latest cuts would be made.

Jobs increase in July, but jobless rate rises to 8.3 percent

WASHINGTON, Fri Aug 3, 2012 – Employers in July hired the most workers in five months, but an increase in the jobless rate to 8.3 percent will probably keep expectations of additional monetary stimulus from the Federal Reserve intact.

Nonfarm payrolls rose 163,000 last month, the Labor Department said on Friday, beating economists expectations for a 100,000 gain. The report was dimmed somewhat by the increase in the jobless rate from 8.2 percent in June, even as more people gave up the search for work.

In addition, employment for May and June was revised to show 6,000 fewer jobs created than previously reported.

The closely watched employment report comes two days after the U.S. central bank sent a stronger signal that a new round of major support could be on the way if the faltering recovery does not pick up.

Most economists expect the Fed will launch a third round of bond purchases, possibly at its next policy meeting on Sept. 12-13.

That’s despite the approach of the U.S. presidential and congressional elections in November, which could leave the central bank open to criticisms from Republicans who have made the weak economy a centerpiece of their campaigning.

How the new JOBS Act can help emerging companies go public

Dale Jensen, Partner-in-Charge, SEC Practice Group, Weaver

Making the decision to become a publicly traded company is not easy for any company. The process can be cumbersome and expensive, and it’s not a decision that a private company makes lightly.

However, the Jumpstart Our Business Startups (JOBS) Act — signed into law by President Barack Obama on April 5 — may make that decision easier for companies that meet the definition of an emerging growth company (EGC). The law is designed to increase American job creation and economic growth by improving access to capital markets for companies.

“The premise of the act is to somewhat reduce the financial and regulatory burden of going public and to provide EGCs with avenues of communication that did not exist under the prior rules for the process of becoming a public company,” says Dale Jensen, partner-in-charge of the SEC practice group at Weaver.

Smart Business spoke with Jensen about what companies can expect from the newly signed JOBS Act and how it can help them on their journey to going public.

What are EGCs and how will the JOBS Act impact them in their quest to go public?

As defined by the act, an EGC is one that has less than $1 billion in total annual gross revenue. The act redefines the rules around accessing capital in the public markets for those companies defined as an EGC. The intent is to give them some advantages by reducing the burdens that, in the past, they had to overcome when going public.

Also, with additional changes in communications with the Securities and Exchange Commission (SEC) and certain allowable communications with qualified potential investors before filing documents, companies can better understand whether becoming public is the right choice for them.

What advantages does the JOBS Act bring to EGCs?

First, an EGC may submit a confidential draft registration statement with the SEC before going public to get feedback and work through initial comments on a confidential basis. Because the law is so new, the SEC continues to come out with additional guidance and clarification about the process.

Another advantage is that an EGC will only be required to have two years of audited financial statements, rather than the three years previously required.

Along those lines, the JOBS Act also delays the requirement for EGCs to have an auditor’s attestation to report on internal controls for up to five years, potentially. In addition, for the implementation of new or revised financial reporting standards, EGCs will be exempt until the time when such standards are required to be implemented by private companies.

Finally, there are other reporting exemptions for EGCs, such as permitting smaller reporting, scaled disclosures for executive compensation, which means significantly reduced reporting and disclosure requirements.

Will the creation of the JOBS Act lead to an increase in the number of publicly traded companies?

Possibly. The reduced burden and the new allowable communications with potential investors (qualified institutional buyers and institutional accredited investors) should enable more EGCs to become publicly traded companies. That said, the process to go public remains the same, but the reduced disclosure requirements and adjustments in the communication process with the SEC and investors should simplify the process and make it less cumbersome for companies that want to pursue that option.

However, with the increase in the number of shareholders a private company may have before it will be required to file with the SEC (increased from 500 to 2,000), there may also be increased opportunity for companies to remain private and raise additional capital. This could also provide an avenue for public companies that are currently below this threshold to exit the public markets.

What challenges of becoming a publicly traded company are not addressed by the JOBS Act?

An EGC needs to understand that even though there is a reduced cost burden of going public, it is still an expensive process. And, once the company has gone public, there is an increase in the cost and oversight related to being public.

Companies also need to consider whether going public is really the right decision for them. Just because the JOBS Act simplifies the process, does not mean that companies should move forward. Companies should consider the following questions: Do you have the organizational structure in place? Do you have the right personnel? Do you have the ability to do the necessary reporting? Are you organizationally ‘publicly fit?’

Finally, make sure you have the right partners in place — aligning with the right accounting and advisory firm and the right legal counsel is critical to a successful entrance into the public markets.

Dale Jensen, CPA, CFE, is the partner-in-charge of the SEC practice group at Weaver. Reach him at [email protected]

Insights Accounting is brought to you by Weaver

Private sector adds 216,000 jobs in February

NEW YORK – Wed Mar 7: The pace of job creation by private employers accelerated more than expected in February, a report by a payrolls processor showed on Wednesday.

The private sector added 216,000 jobs last month, the ADP National Employment Report showed, topping economists’ expectations for a gain of 208,000.

January’s payrolls figures were revised up to an increase of 173,000 from 170,000.

U.S. stock index futures added to gains immediately after the data, while Treasuries prices held steady at lower levels.

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

“This does suggest we are moving in the right direction,” said Beth Ann Bovino, senior U.S. economist at Standard & Poor’s Ratings Services in New York.

“It supports the expectations of another 200,000-plus in Friday’s payroll report. The jobs numbers are looking healthier.”

Economists polled by Reuters are expecting Friday’s report to show a gain of 210,000 in overall nonfarm payrolls, with the addition of 225,000 jobs in the private sector.

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.