Spring Slowdown Paints Ugly Picture for Jobs: ADP/cnbcThe gloomy news continued for jobs as ADP reported Wednesday that private companies created just 119,000 new positions in April.
That was well below expectations and confirmation that the labor market is slowing heading into late spring and early summer.
Economists surveyed by Reuters expected the ADP report to show the private sector created 150,000 jobs in April, down from 158,000 in March.
"Nearly every industry has seen slower growth since the beginning of the year," Moody's economist Mark Zandi said on CNBC. "Smaller businesses are experiencing much weaker growth."
Moody's Analytics conducts the survey in conjunction with ADP.
The report comes two days before the government releases its nonfarm payrolls growth count for April. Economists recently have been nudging down their projections, which are pegged around 150,000 after March's dismal 88,000 reading.
well below expectations, confirmation the labor market is slowing, nearly every industry, small business especially...
doom and gloom, brought to you in drab color by cnbc
heading into friday's bls, the last one was abysmal, march's jobs report showed that 6 times as many of our neighbors and friends dropped out of the workforce, gave up looking altogether, as actually got one of those minimum wage type jobs the obama economy is anemically producing
March Jobs Report: U.S. Economy Adds 88,000 Jobs; Unemployment Rate Down To 7.6 Percent/huffpo
yes, the latimes reported last september that 58% of the way-too-few jobs created under barack hussein pull down between 8 and 12 dollars per hour
after all the stimulus, after almost four trillion dollars of quantitative easing...
we're still a hiccup away from double dip
the labor participation rate is 63.3, lowest since smiling jimmy carter
zandi---"the data seem to be suggesting health care is having an impact"
is he lying?
do you deny it?
back to cnbc, also today:
'Real' Jobless Rate Still Above 10% In Most States/cnbcGDP growth is in the midst of its longest sub-3 percent annual growth rate since 1929, the beginning of the Great Depression, according to Bespoke Investment Group. The economy hasn't topped 3 percent since 2005—before Federal Reserve Chairman Ben Bernanke took over—and is unlikely to do so this year.
Though employment has risen by 1.3 million over the past year, unemployment that counts the discouraged and underemployed, as well as the jobless (often called the "real" unemployment rate) has remained stubbornly high, at 13.8 percent of the workforce, according to the most recent count.
In fact, a state-by-state look at the numbers, released a few days ago and current through the first quarter, shows that just six states have real rates below 10 percent.
"worst economy in 83 years"
"revenue collections have been nearly stagnant over the past six years---a metric that as much as anything else outside of employment indicates true growth, or the lack thereof---and that has come as public debt has soared by $7 trillion"
"the pace of employment growth is anemic"
News from The Associated PressA private survey shows U.S. companies added just 119,000 jobs in April, the fewest in seven months.
The report Wednesday from payroll processor ADP suggests that government spending cuts and higher taxes could be starting to weigh on the job market. And new requirements under President Barack Obama's health care law may be prompting some small and mid-size companies to hold back on hiring.
The slowdown in April was broad-based. Manufacturers cut 10,000 jobs, while firms in the service sector added the fewest in seven months. Construction firms added 15,000 jobs.
Zandi said that hiring is being affected by an increase in Social Security taxes at the beginning of the year and across-the-board spending cuts that kicked in March 1. Along with higher taxes on wealthier Americans, which also took effect Jan. 1, the tax increases and spending cuts could subtract 1.5 percentage points from growth this year, he said.
That's the biggest government drag on the economy since the end of World War II, he said.
Health care reform may also be a reason some employers are holding back, Zandi said. Companies with 50 or more employees in 2013 have to provide insurance for their workers next year.
Firms with 20 to 49 employees have cut hiring for three straight months, from 53,000 in January to just 17,000 last month.
Hiring has also slowed in restaurants, hotels and retailers. Zandi said those are industries where health care coverage is generally lower.
Zandi said he would like to see more data before drawing a firm conclusion, but it "feels like health care is having an impact."
ap's conclusion---"most economists expect growth is slowing in the current quarter and will stay weak into the fall"
expectations for friday were a pathetic 160K, they're now heading toward 125 (says ap)