Economy

Private Sector Job Growth Collapses

JM Ashby
Written by JM Ashby

This is not good news and appears to track with recent estimates from local Federal Reserve branches that economic growth during the fourth quarter of the year will fall to as low as 0.3 to 0.5 percent.

The private sector added just 67,000 jobs during the month of November according to data released by ADP this afternoon, very far below what economists predicted.

Large businesses, meaning those with about 500 employees or more, added 27,000 jobs. Mid-sized enterprises (50-499 employees) added 29,000 positions, while small employers, or those with one to 49 workers, tacked on 11,000 jobs.

Goods-producing sectors such as manufacturing, construction and mining were a weak spot, with 18,000 jobs lost. That’s the third straight month of job declines in the sector. Trade and transportation lost 15,000 jobs. Service-providing sectors gained 85,000 jobs

While the private sector added just 67,000 jobs in November, economists predicted they would add 156,000. Something is clearly wrong with this picture.

Stocks rallied this morning (before the jobs report was released) just because Trump said trade talks with China are going "very well" and you know how I feel about that.

Wall Street is run by morons who appear to have a collective memory of a few hours at best. Trump will have to deploy Larry Kudlow tomorrow to clean up this mess.

The Labor Department's official report won't look quite this bad when it's released on Friday because it will include government jobs, but it's still not going to be pretty. And Republicans say government jobs aren't "real jobs" anyway, right? At least that's what they said when the president was black.

  • gescove

    So, the ADP number is in stark variance to the Labor Department numbers released today showing 266,000 non-farm jobs added, which includes 12,000 government jobs. That’s much brighter news, but wages are still stagnant – what little wage growth we see is barely ahead of inflation. I saw an interesting bit of context posted by CAP that average job growth under Trump is down 15% compared to Obama – 193K per month v 227K per month.

  • muselet

    But that 67,000 jobs doesn’t include the millions of jobs Ivanka Trump created, so it’s Fake News! and totally unfair and biased.

    🙄

    –alopecia

  • gescove

    Who could have predicted that a massive tax cut to the wealthiest individuals and corporation wouldn’t result in a booming economy? That is, except anyone who hasn’t been drinking Laffer’s kool-aid for the past few decades. We are surely headed for a painful recession if we aren’t already in one. The only bright spot in that dreary news is that it diminishes Trump’s re-election prospects.