Yet another employment report and yet more job losses. The ADP report shows a loss of 22,000 jobs but the bad news is more the loss of 25,000 jobs in manufacturing alone. Construction, no surprise there, lost 37,000 jobs.
Jobs in the service sector increased by 38,000, while goods-producing industries cut 60,000, including 25,000 in manufacturing
Borrowing the graph made by EconomPic Data, it shows how manufacturing is still losing jobs, which is almost contradictory from this recent ISM Manufacturing report showing a 53.3 point value for employment, which should imply overall manufacturers are actually hiring.
Do you remember last month when we pointed out the huge discrepancy between the private ADP payroll report and the BLS official unemployment rate and said someone is wrong?
ADP revised last month's data to 61,000 jobs losses, from 84,000 and since ADP only collects data on private payrolls, discrepancies appear to be smoothing out.
The BLS last month reported 85,000 jobs lost for December.
Most of the major economics press tries to paint this report as more happy talk. Less bad is the new good.