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ADP: Private Sector Created 297,000 Jobs

From a breathless CNBC:

Private Sector Job Creation Highest Ever For ADP Report

5 Jan 2011

The private sector created an eye-popping 297,000 jobs from November to December, according a report from ADP that was the highest number the payroll firm has ever reported.

In its monthly report compiled with Macroeconomic Advisors, ADP said the service sector accounted for the bulk of the creation, with 270,000 jobs while goods producers supplied the remaining 27,000.

Would it be cynical to wonder how this could be possible when there has been no real sign of this from the Department Of Labor’s own statistics?

That is to say, if this is true why haven’t new jobless claims gone down more over the last few weeks?

The number was far higher than the 100,000 economists expected the ADP report to show and sets the stage for what could be a positive surprise Friday when the government releases its monthly nonfarm jobs report. That report is expected to show 140,000 jobs were created.

Again, why is there always such a disconnect between the unemployment claims and these job numbers?

Also, lest we forget, we were told this time last year that it would take a net total of about 3 million new jobs to lower the average unemployment rate by 1 percentage point last year.

According to our math (3 million divided by 12) that would require 250,000 new jobs a month to lower unemployment.

Speaking of numbers, weren’t we were assured by no less an authority than Vice President ‘Bite Me’ that the economy would be adding 500,000 new jobs a month – starting last April?

Economists sometimes will use the ADP report to fine-tune their numbers, though the report has varied in its ability to predict the true national jobless picture

Oh, now they tell us.

Still, let’s hope this is true and that (the Republican-forced) extension of the Bush tax cuts is helping the economy already.

This article was posted by Steve on Wednesday, January 5th, 2011. Comments are currently closed.

5 Responses to “ADP: Private Sector Created 297,000 Jobs”

  1. untrainable says:

    The number was far higher than the 100,000 economists expected
    So these numbers were “unexpected”. Well, that’s to be expected.

  2. proreason says:

    Retailers correctly anticipated that holiday spending would increase this year.

    Does a 2-month temp services contract count as a job? Probably in Obama-world it does.

  3. GetBackJack says:

    Would have been 3.8 million new jobs were we drilling for our own oil and building new refineries and nuclear power plants.

  4. Rusty Shackleford says:

    That is to say, if this is true why haven’t new jobless claims gone down more over the last few weeks?

    I’m thinking it’s a similar mechanism that allows Katrina “victims” to keep claiming federal money over and over again; People who have no intention of working going back to the UEO under a new name and identity and getting UE checks. This is the perfect time for it when the government has decided that it’s absolutely necessary for people to continue to receive such payments, naturally, every critter comes out of the woodwork to “gits me some o’dat”.

    However, on the non-cynical side of the argument, of course UE hasn’t gone down. Many companies and small businesses are shuttering, we just don’t hear about it from our all-too-reliable media hacks. They daren’t say anything that would make the second great depression look any worse than it already is. I keep hearing how housing is “making a comeback” yet I know of at least 5 independent contractors who are on food stamps right now and two have had to pull their kids out of college. Tell me again, Pinocchio, how the economy is on an upswing…but don’t stand too close. I don’t want to get poked in the eye with your nose when you say it.

  5. AcornsRNutz says:

    More curious media math. We add 400K to the unemployment dole, the best the private sector has aquired in a month is less than 300K and we call that a gain. So if I steal 4 apples from you and return 3, consider it a gift.


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