On Wednesday ADP announced that private payrolls plunged by 301,000. This was a horrible number. It was the first time ADP reported negative job growth since December 2020. ADP is one of the most trusted private companies in the world. From their website:
We are a comprehensive global provider of cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance expertise. Our unmatched experience, deep insights and cutting-edge technology have transformed human resources from a back-office administrative function to a strategic business advantage.
The ADP report is trusted by economists and comes out before the Labor Department report each month.
So on Friday when the Biden Labor Department announced 467,000 jobs were created in January the experts were gobsmacked. And at the same time the Labor Department said the unemployment rate rose to 4.0%. Weird.
Zero Hedge reported: The print was a 3-sigma beat relative to expectations. Putting it in context, not a single analyst out of 78 expected a number anywhere close to this and in fact the print came in at double the highest forecast.
Economist Steve Moore told FOX Business Network he was perplexed.
Other experts were also stunned by the announcement.
Update— Video corrected for soound.