TREASURIES-Bond prices dip on positive private sector employment data

1 Oct 2015 | Author: | No comments yet »

ADP: Labor Market Adds 200K Jobs.

WASHINGTON — Buoyed by strong consumer spending and steady home sales, businesses in the United States added jobs at a healthy pace in September, according to a private survey.September has been a strong month for job growth in America, as the economy managed to generate an even 200,000 new positions, according to ADP’s National Employment Report released Wednesday.

At this pace, full employment is fast approaching.” Goods-producing jobs accounted for only 12,000 additions this month, or 6 percent of the monthly gains, down from 15,000 in August. That is countering weak economies overseas and the strong dollar, which are cutting into exports. “The overall labor market continues to improve, with domestic strength offsetting foreign weakness,” Jim O’Sullivan, chief United States economist at High Frequency Economics, said in a note to clients. The manufacturing sector, in particular, fell short of expectations, as it shed 15,000 positions for its worst monthly performance since December 2010. Economists forecast that report will show that employers added 206,000 jobs, and the unemployment rate held at 5.1 percent for the second straight month.

The report also illustrated the American economy’s weak spots: Manufacturing cut 15,000 jobs, the most in five years, as large companies like Caterpillar have suffered in the wake of slow growth in China and other emerging markets, like Brazil. Mark Zandi, chief economist at Moody’s Analytics, which compiles the ADP data, said oil and gas drilling companies were also shedding jobs because of the monthslong drop in oil prices.

It’s discouraging to see such weak growth in smaller and medium-sized businesses, considering those segments of the labor market generally account for the lion’s share of additions each month and are indicative of thriving market conditions for smaller business owners. “The largest companies appear to be starting to overcome the impacts of weak global demand and the high dollar, while the smallest companies may have pulled back as concerns about the resiliency of the U.S. economy grew and consumer confidence softened.” Job additions and openings tend to dominate headlines each month when employment reports are released, but it’s important not to overlook the country’s steadily-improving freelance economy that isn’t heavily featured in monthly jobs reports. But that total is well shy of a projection made earlier this week in an MBO Partners independent labor report, which estimates the domestic economy holds 30.2 million independent workers who are at least 21 years old. GDP, was up 5.8 percent from 2014 and is 26 percent higher than the 2011 total,” the report said. “The independent workforce is growing at a rate that is more than four times greater [than] the growth rate of the overall workforce.” The discrepancy in the two projections is partly because the Labor Department counts self-employed workers whose businesses are incorporated – or legally distinguished as free-standing corporate entities – as standard wage and salary workers. It also means the health of the country’s freelance economy can potentially be undervalued. “Independents testify that their career choices stem from a desire to have greater freedom, flexibility, control and purpose. Opportunities are becoming increasingly available for independent or contract workers in technology, bioscience and finance fields, according to the report.

But a gender gap seems to have developed among the labor segment’s highest earners. “As in the traditional workforce, high earners are more likely to be men.

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