This morning we got some great news on the jobs front: ADP, the payroll company, said that 325K new private sector jobs were created in December.
Of course, that’s got everyone excited for the BLS’ Non-Farm Payrolls report that’s coming out tomorrow.
But ADP is controversial, since frequently the end number doesn’t seem to align with BLS.
The truth is though, the survey does have a pretty fine track record.
We just put together this chart comparing the monthly ADP private sector job creation (red line) number against the BLS’ private sector number* (blue line). *Technically we took total monthly job creation, and then subtracted government jobs out of it.
As you can see, the lines align perfectly. Sure there’s noise, but even the intratrend blips are frequently captured pretty nicely.
So pop open the bubbly. Today’s ADP report was good news.