ADP paint brighter US jobs picture ahead of NFP

The ADP reported a drop in US private sector employment by 2.76M in May (vs -9.00M expected). According to this estimate, the total jobs number fell below 107M and is already below the lowest point after the global financial crisis.

Separation by industry noted the largest decline in trade and transportation services (-826K) and manufacturing (-719K).

For global demand for risky assets, it is positive that the overall decline is significantly smaller than expected. It is also worth considering that this report contains data before May 12th. It is consistent with the estimated period for Friday’s official NFP statistics. Still, it may turn out to be significantly worse than the real picture as in the second half of May many states seriously relaxed coronavirus restrictions.

The FxPro Analyst Team