The ADP number is higher than expected and is the last piece of major economic data we will see before the Fed’s FOMC meeting announcement. I am not sure whether the Fed will have seen the Labor Department number, but these jobs data should factor into their announcement on quantitative easing.
The ADP numbers were not only higher than the 22,000 expected, but the September numbers were revised up from a 43,000 job loss to a 2,000 job loss. This is not a sign of a robust employment market. However, it is a sign that the jobs picture is slowly improving. Separately TrimTabs reported an even more robust 95,000 net gain for October. For the official numbers, Dow Jones Newswires says economists it surveyed expect nonfarm payrolls (NFP) to increase by 60,000 in October with the unemployment rate remaining at 9.6%.