ADP Employment Disappoints For 4th Straight Month

ADP printed that the US economy added 177k jobs in June - missing expectations for the fourth straight month (after significantly under-estimating May's BLS print). Both Goods (+29k) and Services (+148k) saw gains in June with only Information Service providers seeing a reduction in employment.

The average job gain per month for the last 12 months is now 190k - the highest since Sept 2016.

“The labor market continues to march towards full employment,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Healthcare led job growth once again and trade rebounded nicely.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Business’ number one problem is finding qualified workers. At the current pace of job growth, if sustained, this problem is set to get much worse. These labor shortages will only intensify across all industries and company sizes.”

 

Full breakdown:

ADP Infographic:

ADP National Employment Report: Private Sector Employment Increased by 177,000 Jobs in June

Finally, as a reminder, we note that since President Trump's election ADP has consistently over-estimated job gains relative to BLS - an entirely different regime from the period of President Obama's tenure...

 

Comments

Kidbuck ebworthen Thu, 07/05/2018 - 09:40 Permalink

My thoughts exactly ebworthen. Companies have made colleges farm teams while their own managers and experienced help shirk their responsibility to train new hires. At least a baseball farm team pays a stipend while the rookies learn their craft. It sucks for the students because they have no way of knowing what creds they need to get hired. Trade schools are still the best bet for all but the intellectually gifted.

In reply to by ebworthen

Giant Meteor Kidbuck Thu, 07/05/2018 - 10:23 Permalink

Underemployment is the dirt swept under the rug .. the skeleton in the closet, ... the red headed step child, the dirty little family secret .. that not even the so called liberal media will touch .. I mean, why would they ..

On the other hand it sometimes leads to comic relief from concerned politicians who've never had to be concerned one day in their wretched lives where their next meal was coming from ..

“You work three jobs? Uniquely American, isn't it? I mean, that is fantastic that you're doing that."

George W Bush, To a divorced mother of three, Omaha, Nebraska, Feb. 4, 2005

In reply to by Kidbuck

Bemused Observer MGTOW_MONERO_XMR Thu, 07/05/2018 - 08:35 Permalink

And the ones who are not able to file for UI because they used up their 'credits' after 2008 and haven't logged enough hours for a new claim? But the headlines are all "Unemployment Claims Down Again!"...

Yeah, no shit. And I'll bet they STAY down for awhile too. It's going to take awhile to replenish those work-credits in the 'gig' economy.

In reply to by MGTOW_MONERO_XMR

JoeTurner Thu, 07/05/2018 - 08:30 Permalink

by difficulty finding "qualifed workers" they usually mean someone willing to work for low wages, crappy benefits and insane working hours.

rejected Thu, 07/05/2018 - 08:30 Permalink

"“The labor market continues to march towards full employment,”

There it is again! 10 more gov brownie points to ZH. 

"Business’ number one problem is finding qualified workers"

A more 'truthful' statement might be: 

Business' number one problem is finding stupid workers that will work for Chinese wages" 

This is good for another 5 gov brownie points. slurp, slurp. 

Idiocracy's Not Sure Thu, 07/05/2018 - 08:35 Permalink

non farm jobs are not important. we need to be concerned with Trans employment. When was the last time you saw a tranny pumping gas, or serving tables? When was the last time you saw a tranny helping school children cross a street or painting a shed.....

Bemused Observer Thu, 07/05/2018 - 08:41 Permalink

I think it is clear by reading the comments that a lot of people have noticed the missing part of the equation here...Employers ARE having a harder time finding workers...AT THE PREVAILING WAGES.

THAT'S the missing part. Like I said, a LOT of people noticed that.

I think this argument has reached it's sell-by date. Time to chuck it and get REAL.

Chief Joesph Thu, 07/05/2018 - 09:08 Permalink

And the companies do absolutely nothing to help "Qualify" the workers they need.  They don't train them, they don't have any apprenticeships set up, they don't do squat to hone the workers skills they need. There is no investments in the workers at all! So, the only conclusion one can draw is: Guess these companies aren't really too interested in staying in business for very long.

dwboston Thu, 07/05/2018 - 09:11 Permalink

If only there were some way that employers could make their available jobs more attractive to prospective employees.  It couldn't be as simple as raising wages, could it?

Stock market (S&P 500) is up 307% since the bottom in March 2009.  Corporations have benefited dramatically at the expense of middle-class and blue-collar workers, and the same corporations fight to flood the country with unskilled and legal/illegal foreign workers to drive down wages.  Trump understands that this country is dead in the water without a middle class, while big business works with the Democrats and open-borders alleged Republicans to turn the country into a third-world hellhole so they can keep doing stock buybacks and keep the shell game going.

Giant Meteor autofixer Thu, 07/05/2018 - 10:06 Permalink

Jerbs, more jerbs! An American Renaissance!. New modernized factories, where rubble now stands! Highly paid and motivated work force, employees with rich retirement pensions and great benefits, American corporations investing in American workers, training, infrastructure a rebirth of the American spirit and pride of it's second to none dedicated work force, the most productive peoples in the world !

In reply to by autofixer

CRM114 Thu, 07/05/2018 - 09:17 Permalink

Please, this is not journalism. Repeating what idiots or liars say and chucking random graphs in is not journalism.

1. Find out what real unemployment is. Use that figure. Start with Shadowstats.

2. Find out exactly what skills employers say they want, and crucially what terms and conditions they are offering for that. Then go ask the workers if they actually get that.

3. Find out why these employers couldn't keep the people they had.

4. Journalism is not sitting on one's butt 'researching' by reading other BS.

Spoiler alert: There is no skilled worker shortage, there is a slave shortage.

 

I am an unemployed skilled worker. I do not count as Unemployed by the laughable BLS measure of that. I am very happy to tell you why I will not work for any of these so-called desperate employers.

 

Chaotix Thu, 07/05/2018 - 09:36 Permalink

House building robots, burger robots, automated ordering at restaurants, self driving cars, online banking.... no wonder the workforce is taking a beating. I've been on disability (I'm really disabled, not a welfare poser) for a few years and it is still below the poverty line as far as statistics go. When I was healthy I worked electrical and assorted construction jobs after a brief and disappointing time in middle management. The way employees are treated in many fields of work, who can blame them for disconnecting from the workforce? Most people these days work due to the 'slave dedication' in order to survive. There used to be a day when people worked in a job they enjoyed and tried to help their business in many ways. Now, the whip crackers are the asshats running the business and everything boils down to the quarterly profit and stock dividends.

 Just because corporations get tax breaks/cuts does not mean they are a better business. Much of that money gets funneled into executive privilege. The economics of it never 'trickles down' to the average worker. More, faster, less breaks, less benefits, and a perpetual stress of being employed not by a boss, but a future wealthy tyrant. And the govvies wonder why there is a slump in the job market?

GoldRulesPaperDrools Thu, 07/05/2018 - 09:41 Permalink

Mark Zandi, chief economist of Moody’s Analytics, said, “Business’ number one problem is finding qualified workers. At the current pace of job growth, if sustained, this problem is set to get much worse. These labor shortages will only intensify across all industries and company sizes.”

 

Translation: THEY'RE GOING TO HAVE TO PAY MORE ... WINNING!!! MAGA!!

DipshitMiddleC… Thu, 07/05/2018 - 10:07 Permalink

not many jobs here in the northeast except $15 an hour shit jobs

 

a month ago or so i posted a job for a financial analyst on indeed

 

100+ resumes within one day. 74% or so were from indians

 

surf@jm Thu, 07/05/2018 - 11:08 Permalink

Well, maybe you greedy bozo employers can teach all those illegal aliens, that you bribe politicians to import, the technical skills to do your jobs.....

Of course you will have to teach them to read and write first, because third world shitholes, are not known for their great academics.......LMAO!.....

Or maybe you can just pay a wage to the locals that keeps up with government currency devaluation money printing.....