CNBC: New ADP count slashes job creation for September

Revisions to the way payroll data firm ADP counts private sector job creation have resulted in a sharp drop in the September employment count. ADP’s new calculations put the monthly job creation at just 88,200, down from the 162,000 the firm originally reported earlier this month.

Revisions to the way payroll data firm ADP counts private sector job creation have resulted in a sharp drop in the September employment count.

ADP’s new calculations put the monthly job creation at just 88,200, down from the 162,000 the firm originally reported earlier this month.

The firm recently has entered into a partnership with Moody’s Analytics that will change the way the private payroll count is calculated.

The new private payroll count now is actually under Labor’s September job creation total of 114,000. The unemployment rate dropped last month to 7.8 percent, but the government said the total number of new workers swelled by 873,000.

Economists expect Friday’s report to show 125,000 new jobs and the jobless rate to hold steady.

When the Labor Department revealed its September job count, it sparked criticism from some quarters that the numbers were being manipulated for political purposes as the November presidential election drew near.

The soft ADP count could add credence to those who believe the pace of job creation is slower than the government’s numbers indicate.

Former General Electric CEO Jack Welch caused a skirmish when he said in Twitter, “Unbelievable jobs numbers…these Chicago guys will do anything…can’t debate so change numbers.” (Read More: Jack Welch Defends His Jobs Report Comments (Again))

ADP will announce its October count on Thursday, with the Labor Department to follow on Friday.

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