ADP National employment report in U.S. exceeds expectations

A major survey of U.S. employment trends(www.adpemploymentreport.com/pdf/FINAL_Report_December_10.pdf)      which is based on a very broad sample survey of companies accounting for over 21 million employees showed a net gain of 297,000 new employees hired last month, some three times what economists on average expected. This data is quite positive news , particularly if it is confirmed by the Monthly Bureau of Labour Statistics data due shortly. It would be further solid evidence that the recovery is taking hold. We shall see what the next report reveals but there is now a reasonable possibility that the rate of unemployment in the U.S. will head downwards .This will also be good news for Canada and the global economy because of the size and importance of the U.S. economy and substantial inter -country trade patterns that exist. Of course, because there are so many discouraged workers sitting on the sidelines it will take some months to draw them back into the labour force and the unemployment rate drop substantially month to month. U6, the broader measure of unemployment still sits at 17 %, so there is plenty of room for expansion of the economy, before we should start worrying about inflation, despite the current boom in commodity prices, which is partly due to the floods in Australia and the activities of the futures markets.