ADP Report Shows US Payrolls Still on Decline

Private payroll services company ADP, released its monthly unemployment report which showed that companies in the US reduced payrolls by 23,000 in March. This figure differs wildly from a survey of economists who suggest that this Friday’s government employment report will show payrolls increased by 184,000.

The reason for this optimism could be short-lived however as temporary hiring by the federal government to conduct the 2010 census will boost employment levels. Analysts also point out that better weather in March, compared to the stormy February, will add to the ranks of outside and seasonal workers.

“Just because things are getting better tomorrow doesn’t mean that things are good today,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “Weak labor markets remain the single- biggest risk to economic growth for the coming years.”

Source: Bloomberg

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