What Recession? Inside the August ADP Report
Bottom Line: It’s hard to know where to begin when it comes to this particular report. Based on economic reporting you’ve heard over the past month would you expect jobs to have been added or cut? Would you expect job gains to be their best in five months or lowest in five years? My point is this. The ADP private sector jobs report once again debunks all of the fake news reporting that we’re in a recession. Not only did we add jobs. We added the most since April by adding 195,000 new jobs during August.
What’s more is that it’s the most well-balanced jobs report of the year, showing success for businesses of all sizes.
- Small businesses: +66,000
- Medium sized businesses: +77,000
- Large businesses: +52,000
That’s exciting for two reasons. First, small businesses have been lagging in hiring for almost all of 2019. Much of that appeared to be a byproduct of a tight labor market with larger competition winning potential talent aware from smaller companies rather than small businesses not attempting to hire. A month like this essentially confirms that’s the case. Small businesses are the best immediate read on the economy. They have the smallest margin for error and therefore only hire when there’s a pressing need and are quicker to lay off people if demand drops. But wait there’s still more. Both construction and manufacturing jobs continued to grow during the month as well. Simply put, it’s impossible to have job growth like this and be in a recession. It’s fake news.
The top industries for hiring were...
- #1 Education and healthcare
- #2 Leisure and hospitality
- #3 Trade, transportation and utilities
Notice something else there... Remember how the trade war was killing trade in this country? Notice how that sector participated in the third best job growth of the month adding 39,000 people. Fake news recession. Fake news media. Good economy.