If Unrevised, Job Gains in May Will Mark the Smallest for the Expansion
The ADP National Employment Report said the U.S. private sector added only 27,000 jobs in May, far less than the consensus forecast. The total number of payrolls added for April was revised down slightly to a still solid 271,000.
|Prior||Prior Revised||Consensus Forecast||Forecast Range||Actual|
|ADP Private Payroll ∆||275,000||271K||175,000||125,000 to 190,000||27,000|
“Following an overly strong April, May marked the smallest gain since the expansion began,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”
The goods-producing sector lost a total 43,000 in May. Construction shed -36,000, while manufacturing and mining/natural resources lost -3,000 and -4,000, respectively.
Meanwhile, the service-providing sector added a total 71,000 jobs in May. Education and health services led the way with 33,000, a result of health care/social assistance adding 34,000 and education losing -1,000.
“Job growth is moderating,” Mark Zandi, chief economist of Moody’s Analytics, said. “Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
Small businesses with 1 to 49 employees lost -52,000, while medium businesses with 50 to 499 employees added 11,000. Large businesses with 500 or more employees added 68,000.