March 2013 ADP private sector job growth misses estimates, construction added zero jobs, next 9 months predicted weak due to ObamaCare restrictions

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4/3/13, "ADP: Private sector job growth slowed in March," CNN, T. Luhby

"The pace of hiring by private employers slowed last month. Only 158,000 jobs were added, according to a report issued Wednesday by payroll-processing firm ADP.

This missed the consensus forecast from Briefing.com of 197,000 jobs, and was a sharp drop from February's job growth, which was revised upwards to 237,000 jobs added. 

The March ADP tally was the smallest since October, when private companies added 148,000 jobs. 

The main cause of the slowdown was a sharp decrease in hiring a sharp decrease in hiring by construction firms, which did not add any jobs last month. This is a marked contrast from the previous four months. Construction job growth, juiced by the upswing in the housing market, has averaged 29,000 a month according to ADP. 

"The job market continues to improve, but in fits and starts," said Mark Zandi, chief economist of Moody's Analytics. "Construction employment gains paused as the rebuilding surge in the wake of Superstorm Sandy ended. Anticipation of health care reform may also be weighing on employment at companies with close to 50 employees." 

Smaller employers may be trying to keep payrolls below 50 workers to avoid penalties levied on larger firms in 2014 as part of the Affordable Care Act, Zandi says. He expects this to weigh on hiring in the near term....

Zandi expects the weakening to last up to nine months, with the overall monthly jobs growth moderating to 125,000."...via Free Republic

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4/3/13, "ADP March Private Jobs Miss, Lowest Since October," Zero Hedge


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