Why the divergence?
What could be happening?
ADP could be better at capturing illegal immigrant jobs than official government data. Often, illegal immigrants are paid with cash rather than something like ADP but there may be a class of workers that are on expired visas, use someone else's identity or flout the rules in other ways. Given the US crackdown, those jobs may be disappearing.
In addition, the official data could be better at picking up the backfilling of illegal immigrant jobs by legal Americans, which would look like excess hiring.
All that said, it's just a theory and not backed up by any data (yet) but there are big things happening in the US economy via immigration and it's something to keep a close eye on. For now markets are taking it at face value and it's led to a big jump in the US dollar and a drop in pricing for Fed cuts.
This article was written by Adam Button at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( A theory on why ADP and non-farm payrolls are diverging )
Also on site :