The ADP employment report, which is produced by a private company and based on payroll data, showed that the US cut only 8,000 jobs in September. That’s far fewer jobs cut than almost anyone guessed. Most expected as many at 50,000 job cuts, and some dire predictions had the number even higher.
This is even more surprising given that ADP Employer Services had to revise the August numbers to show even more job cuts. They had earlier put the number at 33,000. This morning the August numbers were pushed out to 37,000 cuts.
How are overall jobs holding up so well despite the automakers, home building and financial services slashing workforces? It looks like dollar weakness can claim the credit. It’s growth in orders for goods and services from overseas that’s creating jobs. Later this week, on October 3, we’ll get the government’s report on payroll and unemployment. These have generally shown far more losses than the ADP’s reports this year.