A Mixed Yet Positive Bias Ahead of Labor Department Payrolls and Unemployment

ADP reported on Wednesday morning that private sector employment payrolls rose by 201,000 in May versus April. The firm’s ADP National Employment Report is derived from ADP’s actual payroll data and is said to measure the change in total nonfarm private employment each month on a seasonally adjusted basis.

Of the ADP contributions, 122,000 were from small businesses. Another 65,000 were reported to be from midsized businesses, and about 13,000 came from large businesses.

TrimTabs Investment Research also projected that the U.S. economy added some 273,000 jobs in the month of May. This marked the 11th straight month in which TrimTabs projected that employment growth exceeded 200,000 jobs.

The outfit indicated that real-time tax data indicates employment growth remains solid, and this is compiled from an analysis of daily income tax deposits to the U.S. Treasury from the paychecks of the 141 million U.S. workers subject to withholding. TrimTabs also said that the economy added 327,000 jobs in April, the highest figure since May 2010.

Bloomberg has forecasts from economists showing the employment situation consensus readings as being 220,000 in nonfarm payroll additions, with 215,000 being from the private sector. The unemployment rate is expected to remain static at 5.4% for the month of May.

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