Interest rates rose slightly, and the stock market rallied on expectations of a robust gain in jobs ahead of tomorrow’s jobs report. ADP, the country’s largest payroll service, reported an estimated 281,000 jobs created in June! This is the highest number of jobs created in a month since November of 2012. This number, if it is in line with the jobs report tomorrow, shows that the economy is expanding at an increased rate.
Of the 281,000 new jobs, 117,000 of them were created by companies with fewer than 50 employees. Mid-sized businesses added 115,000 jobs and large companies with over 500 employees only attributed 49,000 new jobs. Mid-size companies haven’t created that many jobs in over 6 years.
The first quarter 2014 jobs and GDP numbers were terrible, but in the second quarter the job numbers were quite good. January to March of this year had a total of 505,000 new jobs compared to 680,000 jobs created from April to June. The second quarter GDP numbers will not be out for a couple of months, but that number is expected to be drastically better than the first quarter as was job gains!