Market Commentary

ADP Private Payroll

Every month ADP reports on added new jobs by private employers. This number always comes out a few days before the office non-farm payroll report. It provides a hint as to what the official report will look like without the public job’s numbers.

This morning the number was 897,000 new jobs. That was far and away better than the expected number, which was in the 300,000 area. A third of these new jobs were in the area of leisure and hospitality. This area, of course, was the hardest hit by Covid. It is interesting that the new covid variant which is spiking all over the world is not having much of an affect on that part of the economy.  Unlike it did when Covid first came on the scene. Likely businesses and people are recognizing that the Omicron variant symptomatology is weak. Very few people are dying from it and most of those that have had it describe it as a bad cold or mild flew.

It also may be that there is a huge pent-up demand for leisure activities thus job creation in that field. It also bodes well for a growing economy. Tourism is big business here in the U.S. and in some countries it is their main economic driver.