The private sector employment numbers are showing strength.

There was understandable surprise and consternation over the much lower than expected December employment growth.  The monthly addition of only 74k new employees is dramatically off trend and may be materially revised in coming months.  I prefer to keep focused on the numbers reported by ADP, the big payroll processing company.  ADP has hands on knowledge of actual payrolls.  Theirs is more of a counting exercise whereas the BLS reports are estimates based on surveys.  ADP is signaling more growth in the economy.  The private sector is doing far better than the public sector.  The following charts are revealing – more private sector and less public sector is good.  Jeb B. Terry, SR.  Jan. 12, 2014

ADP Dec 2013 employment charts 1-12-14

Pvt v Public sector emplyment growth index 1-12-14

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