Wednesday, October 1, 2025

Friday's US labour market stats likely bad

The ADP job gains data are reasonably well correlated with the payrolls survey.  The relationship isn't perfect, but it's good enough to suspect that the upcoming official payrolls report (due out Friday morning US time) will be bad.   The ADP data are more important than usual right now, because of the Federal Government shutdown; the jobs report is unlikely to be released.  The ADP data come from a company which processes payrolls for the private sector, so it excludes changes in the public sector, which are, if anything, likely to be worse.

Employment is now falling.   That is the very essence of recession.






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