The numbers: Another ugly jobs number. According to ADP, the private sector slashed a net 10,000 jobs in the month of august. Analysts were looking for the creation of 13,000 jobs, so not good. Small businesses slashed 6,000 jobs. Manufacturing fell by 6,000 in august.
This is the first time in several months that ADP has reported net job losses.
The odds that this Friday we’ll see a negative print on the government jobs report on the private industry side (a headline negative number is a done deal, thanks to the Census), seems to be increasing.
US futures are still pointing up, however.
Background: This is a little morsel of a jobs report before Friday’s big show. The ADP report is a semi-reliable predictor of what the government jobs data will show. It only looks at private sector hiring (this not skewed by Census). Analysts are looking for a paltry 13,000 new jobs.