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Economic Forecast: Labor Optimism

Investors are buzzing after ADP Employer Services reported that private employers added 9,000 jobs in July versus expectations for a loss of 60,000. According to revisions, 77,000 private sector jobs were lost in June. This is definitely good news, but the market tends to focus much more on the monthly employment report that comes out this Friday. Economists are expecting a drop of 75,000, which would be the seventh straight month of job losses. Does the ADP number make for potential upside? It’s not a guarantee as these two numbers have diverged greatly in the past, but there is reason for hope.

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