Revisions to the way payroll data firm ADP counts private sector job creation have resulted in a sharp drop in the September employment count.This seems to have been the case with the last several reports...
ADP's new calculations put the monthly job creation at just 88,200, down from the 162,000 the firm originally reported earlier this month.
When the Labor Department revealed its September job count, it sparked criticism from some quarters that the numbers were being manipulated for political purposes as the November presidential election drew near.
The soft ADP count could add credence to those who believe the pace of job creation is slower than the government's numbers indicate.
"It's huge, no doubt about it," said Todd Schoenberger, managing principal at the BlackBay Group in New York. "Their changing the methodology tells me that if the number is cut in half with that revision, then the revision we're going to see Friday is going to be a disaster."
Wednesday, October 31, 2012
The Invisible Jobs
Something doesn't add up: