#JobGrowth #ADPReport #EconomicTrends
The latest report from ADP reveals that private sector job creation slowed down significantly in May, adding only 152,000 jobs, which is much less than the expected 175,000. This marks the lowest monthly increase since February. The services sector dominated the hiring, with trade, transportation, and utilities leading the way with 55,000 new jobs. Annual wage growth remained steady at 5%.
The report highlights areas of weakness, particularly among producers and consumers. Manufacturing, which has been in contraction for most of the past year and a half, shed 20,000 jobs. Other sectors with decreases included natural resources and mining, information, and professional and business services. Small businesses also saw a decline, with a loss of 36,000 jobs.
The ADP report is set to be followed by the more closely watched nonfarm payrolls count from the Bureau of Labor Statistics, which is scheduled for release in two days. Wall Street economists anticipate that nonfarm payrolls expanded by 190,000 in May, following a growth of 175,000 in the previous month. However, recent indicators suggest a potential slowdown in hiring.
Perspective
The comments section expresses concern over the slowing job growth, with some attributing it to the ongoing economic uncertainty. Others point out that the services sector's dominance in hiring may indicate a shift towards more service-oriented industries. Some users also discuss the potential impact on the stock market, particularly in sectors like manufacturing and small businesses.
Data
- The Bureau of Labor Statistics reported that job openings dropped to just over 8 million in April, the lowest level since February 2021.
- The ADP report showed private payroll growth of 188,000 in April, surpassing the BLS count of 167,000.
- The services sector has been driving job growth, with trade, transportation, and utilities leading the way, followed by education and health services, and construction.
Original Article: https://www.cnbc.com/2024/06/05/private-payrolls-growth-slows-to-152000-in-may-much-less-than-expected-adp-says.html
Leave a Reply