ADP Employment Disappoints As Small Business, Manufacturing Payrolls Shrink

Tyler Durden's picture

Despite the exuberance of US equity markets and sentiment indicators, ADP reports small businesses cut jobs (-3k) in December (as large businesses added) leaving ADP at 153k (considerably below the 175k expectation). Once again goods producing jobs declined (despite soft survey data from ISM/PMI that everything is awesome) as services improved. Additionally, manufacturing jobs continued to slide, down by 9,000 in December, while construction and mining jobs also declined by 2,000 and 5,000 respectively.

As this was the 2nd lowest print for ADP since May, Mark Zandi - no longer beholden to a Democratic administration in which he desperately want a political seat - has suddenly become a doomsayer: "As we enter 2017, the tightening labor market will likely slow the growth.”

Some commentary:

“As we exit 2016, it’s interesting to note that the private sector generated an average of 174,000 jobs per month, down from 209,000 in 2015,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “And while job gains in December were slightly below our monthly average, the U.S. labor market has experienced unprecedented seven years of growth that has brought us to near full employment. As we enter 2017, the tightening labor market will likely slow the growth.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth remains strong but is slowing. The gap between employment growth in the service economy and losses on the goods side persists. Smaller companies are struggling to maintain payrolls while large companies are expanding at a healthy pace.”

More charts:

Change in Nonfarm Private Employment

Change in Total Nonfarm Private Employment

Change in Total Nonfarm Private Employment by Company Size

The details from the report:


Full breakdown:

<br />
     ADP National Employment Report: Private Sector Employment Increased by 153,000 Jobs in December<br />

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DeeZ_nutZ's picture

one tweet and the issue is fixed.  no need to wait until january 20, bitches!

Paul Kersey's picture

The Wall Street (ponzi) economy cranks, while the Main Street (real) economy tanks. It's only a matter of time until all malls anchored by Sears or J.C. Penny will close.

Paul Kersey's picture

Healthcare is 18% of GDP. In 1980 it was 9%. Talk about a sick economy getting sicker.

FreeShitter's picture

All the new jobs will be coming from millenials wiping the dirty asses of aging baby boomers.

two hoots's picture


US companies offshore jobs, employment falls, wages decline to a service sector pay scale, pensions are replaced by 401ks, 4 year college education deemed useless…..etc.


Now that the above is cooked in they bring back jobs at this lower pay scale/benefits.  Was it a plan to get American workers in line with global labor cost?   Or did it just work out that way?


Jason T's picture

not good.  We're spent it seems.  

I brewed a good coffee this a.m.


King Tut's picture
King Tut (not verified) Jason T Jan 5, 2017 8:54 AM

jobs soften as Janet raises.

NoDebt's picture

I don't mean to pick nits, but where in that graphic does it show 3K of job losses at small companies?  Number I'm seeing says +18K.



Bruce Flea's picture

1-50 employees is divided into two parts. 1-19, and 20-50. 1-19 sized companies lost 3,000 jobs.

Look on the "details" page.

Seasmoke's picture

2017 the year of the TRUTH in numbers. Funny how that works with TRUMP in White House.

Nunyadambizness's picture

I certainly hope so, but will wait to see what happens after Jan. 20th....

Eagle40's picture

Eventually the truth will come out about our failing employment economy. St Louis Fed has 3 million less full time jobs reported now than in 2009 which means if Obozo has created 10 million part time worthless jobs we lost a total of 13 million more good full time paying jobs. This economy never recovered and eventually will sink like the Titanic. What is strange is yesterday's news on car sales reaching all time highs. I wonder where all these buyers are getting the money????

King Tut's picture
King Tut (not verified) Eagle40 Jan 5, 2017 8:55 AM

0% down EZ loans on 6 or 7 year loan duration

Triggernometry's picture

Or rather eventually our treasury bonds will get ubiquitously dumped, and the festering blister that is our economy will be laid bare for all to see...