The more things change, the more they stay the same. Big data has completely innovated the way business is done. Not only are 60% of companies investing in human resource analytics tools to help make their HR departments more efficient, but a full 60% of full-time employees are now using some kind of web-based technology to manage or enroll in benefits.
Yet, regardless of how much technology has changed the way business is conducted, it’s still business and the stock market still carries a lot of weight, which is why many had a positive outlook this week as the markets remained steady just before a U.S. jobs report was released.
According to payroll processing company ADP, U.S. businesses have added about 281,000 jobs last month, which is up from the 179,000 jobs recorded last month and the 200,000 median forecast. ADP’s survey also suggests that the official government figures that are yet to be released may also show a significant gain from May’s total of 217,000 jobs.
The stock market’s steady rhythms indicate that business are hiring more workers while also limiting dismissal, effectively bolstering economic projections that the economy will gain strength after the contraction in the first-quarter.
“It all points to a relatively optimistic outlook,” said U.S. chief economist for Nomura Holdings Inc. Lewis Alexander, whose company projected a gain of 240,000. “Businesses are seeing demand and the fact that they’re hiring supports that.”
However, market analysts remained cautious as ADP’s figures don’t always match up with the government data.
“This means upside risk to tomorrow’s payroll report,” said Jennifer Lee, a BMO Capital Markets senior economist. “But please remember how the ADP is known for throwing the market off ahead of the official jobs report.”
While big data has helped make businesses more efficient and analyze more accurately, it’s still the same as it ever was. Only time will tell if the market’s truly strengthened as much as tech savvy analysts believe.