Companies in the U.S. unexpectedly (for Keynesians) cut workers in September.
Employment decreased by 39,000, the biggest drop since January, after a revised 10,000 gain in August, according to figures today from ADP Employer Services. The median estimate of 37 Keynesian economists surveyed by Bloomberg News called for a gain of 20,000.
Given the expected change in Fed policy that will be launched on 11-4 (after the elections and after the FOMC meeting), this number doesn't mean much. The Fed is going to print money via an expansion of their balance sheet. Now all eyes must be on how much balance sheet expansion occurs and whether that expansion translates into money supply growth. Early indications are the money supply growth will be huge.
ADP created a very useful report for clever governments. The decrease of 39,000 jobs is reflection of poor market forces. Supply is higher as demand. I believe that next months will be much more better. We will see.
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