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Weekly Indicators: Global Manufacturing and Services PMIs

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Part 10
Weekly Indicators: Global Manufacturing and Services PMIs PART 10 OF 21

Key ADP Report Highlights: 177,000 New Jobs in April

ADP National Employment Report

The recently released ADP National Employment Report for April 2017 showed a small improvement in the labor market. According to the report, the private sector added 177,000 jobs in April, compared to the market expectation of 175,000. In March, private sector employment stood at 263,000.

Key ADP Report Highlights: 177,000 New Jobs in April

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Key highlights from the April report

Let’s look at jobs additions by sector:

  • The professional and business sectors added 72,000 jobs.
  • The education and health sectors added 41,000 jobs.
  • The trade, transportation, and utilities (XLU) sectors added a combined 5,000 jobs.

The private payroll employment figure of 177,000 jobs for April included an additional 61,000 employees in the small business category, about 78,000 in the medium business category, and about 38,000 in the large business category.

Impact on the market

April’s private job figures signaled weaker conditions for US (IWM) (QQQ) (VOO) (SPX-INDEX) private businesses. However, the non-farm payroll in the April jobs report beat market expectations and showed an improvement in labor market conditions, which should increase confidence in the US economy.

Tax reforms in the United States (VFINX) (IWM) could spark jobs growth. If the corporate tax rate is reduced from 35.0% to 15.0%, it could boost companies’ net earnings, which could lead to businesses expanding their capabilities, investing in new projects, and ultimately increasing shareholder value. Companies could also hire more people, thus boosting employment figures. All these factors could ultimately lead to more consumer spending, which, of course, would boost the overall economy.

In the next part of this series, we’ll analyze the performance of the US Services PMI (Purchasing Managers’ Index) in April 2017.

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