ADP Jobs Report: Some Are Skeptical

The ADP jobs report: the skeptics are out. ADP employment change for December came in much stronger than expected, at 325,000 jobs created, well above the consensus of 175,000.

Charles Biderman of called to say that he had a hard time believing that there were that many jobs created.

The reason: his data on withholding taxes indicate that incomes are down year over year, and also sequentially (month to month). "Incomes are declining, the economy is weakening, and we are not growing jobs by 300,000...who knows what the real numbers are, but you can't have 300,000 jobs created with slowing growth in withholding collections. If you had 300,000 new jobs you'd have a spurt in withholding collections."

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