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Federal Reserve Loses Channel for Obtaining Separate Employment Data from Third-Party Provider
Summary: According to Jinshi's report, the 'Federal Reserve megaphone' Nick Timiraos pointed out that Fed officials recently lost access to employment data provided by third-party sources. Since 2018, payroll processing company ADP has been providing the Fed with a dataset containing anonymous employment and income information, covering 20% of the private sector workforce in the U.S. ...
According to Jinshi's report, the 'Federal Reserve megaphone' Nick Timiraos pointed out that Fed officials recently lost access to employment data provided by third-party sources. Since 2018, payroll processing company ADP has been providing the Fed with a dataset containing anonymous employment and income information, covering 20% of the private sector workforce in the U.S. The Fed typically received this data with about a one-week delay, making it a timely and comprehensive measure of the employment market conditions. Sources revealed that after Fed Governor Waller's speech at the end of August drew public attention to the Fed's long-term use of ADP employment data, ADP stopped providing this data to the Fed. The specific reasons for this change are not yet clear. In Waller's speech, he cited ADP data in a footnote, further indicating his concerns about the slowing labor market. The footnote indicated that preliminary estimates show a continued deterioration in summer hiring conditions, with data covering a period beyond the latest government data.
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Link: Federal Reserve Loses Channel for Obtaining Separate Employment Data from Third-Party Provider [Copy]
