Private Sector Labor Market Sees Lukewarm Growth
The US private sector added 201K jobs in May, according to a report released today by the payroll processor ADP. Economists had projected 215K jobs being created. The modest improvement came in part thanks to continued sluggishness in hiring by large firms with more than 500 employees. Those companies made just 13K new hires last month. Meanwhile, medium-sized firms (with between 50 and 500 employees) created 65K new jobs and small firms (with fewer than 50 employees) added 122K new jobs. Manufacturers cut 5K jobs.
Still, the numbers are an improvement from April's 165K private sector job additions. And the ADP report is a less reliable gauge than Bureau of Labor Statistic numbers due tomorrow. Prognosticators expect that report to show the unemployment rate plateauing at April's 5.4%, with 225K private and government jobs added last month.