Strong ADP Print For October Opens Door For Powell’s Taper
ADP reports that 571k jobs were added in October, well above the 400k expected, but we note September’s 568k print was revised significantly lower to 523k.
“The labor market showed renewed momentum last month, with a jump from the third quarter average of 385,000 monthly jobs added, marking nearly 5 million job gains this year,” said Nela Richardson, chief economist, ADP.
“Service sector providers led the increase and the goods sector gains were broad based, reporting the strongest reading of the year. Large companies fueled the stronger recovery in October, marking the second straight month of impressive growth.”
Once again, Services jobs (+458k) dominated Goods-Producing jobs (+113k)…
All sectors saw job gains:
“The job market is revving back up as the Delta-wave of the pandemic winds down,” Mark Zandi, chief economist of Moody’s Analytics, said in a statement.
“As long as the pandemic remains contained, more big job gains are likely in coming months.
Large firms dominated the job additions but Small firms are coming back strong:
Small firms (1-49) added 115k jobs in Oct.
Medium firms (50-499) added 114k jobs in Oct.
Firms with over 500 employees added 342k jobs
The ‘strong’ ADP print provides more support for Powell to unleash the taper later today.
Wed, 11/03/2021 – 08:21