ADP's August Payrolls Data Looks Like a Shocker

Jobs

Published: September 6, 2012 8:28 am

Last Updated: April 27, 2020 3:15 pm

Automatic Data Processing Inc. (NASDAQ: ADP) has stunned the markets with its projected private payrolls gains this morning. The number is meant to preempt the official Labor Department’s report on the employment situation due tomorrow at 8:30 a.m. EST. If this acts as a true harbinger, then the expectations for nonfarm and private payrolls will be adjusted upward for tomorrow’s big number.

ADP is projecting that some 201,000 jobs were added to the payrolls in the month of August. Why this is such a shock is that Bloomberg was only calling for about 140,000 jobs created. We also saw a slight revision higher for July to 173,000.

This will make the weekly jobless claims that much more important. Tomorrow’s big jobs expectations by Bloomberg are as follows:

Nonfarm payrolls 125,000, with a range of 70,000 to 177,000
Private payrolls 134,00, with a range of 80,000 to 177,000
Unemployment expected to be flat at 8.3%, with a range of 8.2% to 8.4%

What you need to expect is simple. The market now likely will ratchet up its expectations slightly. That 8.3% unemployment range is now probably a coin toss between 8.2% and 8.3%, and the nonfarm payrolls and private sector expectations will be adjusted higher by 20,000 or 30,000.

There is a caveat here as well. ADP is indicated as a prediction tool, but sometimes it is not representative of the broad economic report.

JON C. OGG

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.