ADP Employment Report May 3 2017

According to ADP (Automatic Data Processing) the economy added 177,000 jobs in April; which was lower than the March reading. The ADP employment report for May 3, 2017 was a bit stronger than estimates, analyst expected a reading of 175,000 jobs and the report comes before the FOMC announcement later today.  The ADP employment report also comes before the government jobs report which is due on Friday.  

The report has some red flags in that it showed weak hiring in construction and retail which might be a warning for the government ADP Employment Reportjobs report due on Friday.  As with all ADP employment reports, including the one for May 3, 2017; the general belief is that the ADP reports are a decent measure of what to expect from the payrolls employment report due at the end of the week.  Sometimes they are similar; and sometimes they are not.  The employment report due at the end of the week has a bigger influence over mortgage rates than he ADP report.

 Low mortgages rates similar to what was offered yesterday should be available today with most lenders.  Keep in mind that could changes; especially later today with the FOMC meeting.  One analyst had this to say about the ADP report:

“The softness in construction is continued payback from outsized growth during the mild winter,” says Mark Zandi, chief economist of Moody’s analytics, which helps ADP compile the report. “Brick-and-mortar retailers cut jobs in response to withering competition from online.”

Here is a basic breakdown of the employment numbers:  Construction companies cut 2,000 jobs and trade/transportation/utilities employers added only 5,000.  Professional services added just over 71,000 jobs; education and health care added just over 40,000; leisure and hospitality added 35,000; and manufacturers was just 11,000 new jobs.