Private Payrolls Up in Advance of Friday Jobs Report
Today, Automatic Data Processing, or ADP, which processes payrolls for private companies, said that the private sector added 55,000 jobs to payroll in May — the fourth consecutive month of increases. Economists expected private companies to add around 60,000 jobs. In April, they added 65,000 positions.
The news bodes well for a strong unemployment report on Friday. The job force should grow considerably due to census hiring. (The government offers work to around 500,000 people when conducting the decade’s census.) Even without that, though, economists are hoping for the economy to have added around 100,000 jobs.
Vice President Joe Biden seconded that assessment when speaking with Charlie Rose last night.
We lost 8 million new jobs since we hit the skids. … It’s going to take us several years to get back to that number.
Here’s what I can tell you. I predicted — and I got in trouble for predicting this, but I turned out to be right, as I might very vainfully point out — that we’re going to be creating jobs … by the middle of the end of the first quarter [of 2010]. We are. We continue to create jobs. **And I predict that we would create 250,000 jobs last month; we actually created 280,000 jobs. I think we’ll create between 100,000 and 200,000 jobs [per month] on average all the way through this year, increasing it next year beyond that. **
Rose then asks him how long it will take for unemployment to return to 6 percent. Biden says it is unknowable, but depends on two main things: Europe and consumer confidence.
The answer to that question is unknowable for [a few] reasons. One: We don’t know what’s going to happen in Europe…[Two:] We also have never been able to accurately measure what is the ultimate engine of this economic growth — consumer confidence. My mantra with our economic team is, and they just think I’m an optimist, America caught every bad break ont eh way down. It’s time we catch some good breaks on the way up. Just a change in consumer confidence and their willingess to go out and spend can significantly increase and change the rapidity with which we bring down that unemployment rate.