Private companies added just 27,000 jobs in May, according to the monthly ADP National Employment Report. That’s the lowest tally since 2010 and far less than the 180,000 jobs predicted by economists, per Reuters.
“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, in a statement. “Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”
A Bad Month for Small Businesses
“Job growth is moderating,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
Small businesses shed 52,000 jobs last month. Medium-sized companies (50 to 499 employees) added 11,000 jobs, while large businesses (500-plus employees) added 68,000 jobs.
The goods-producing sector lost 43,000 jobs in May, with losses in construction (-36,000 jobs), manufacturing (-3,000 jobs) and mining (-4,000 jobs).
The service-providing sector added 71,000 jobs, with gains concentrated in health care (+34,000 jobs), professional/business services (+22,000 jobs), leisure/hospitality (+16,000 jobs) and financial activities (+13,000 jobs).
Per The Associated Press, economists predict that Friday’s report from the Labor Department will show the addition of 185,000 jobs to public and private non-farm payrolls. The unemployment rate is expected to stay steady at 3.6 percent.
The report will also show the latest information on wage growth, which has picked up in recent months as the labor market tightens. However, The PayScale Index shows that real wages were 9 percent lower in Q1 2019 than in 2006, prior to the last recession.
Tell Us What You Think
What’s your take on this report? We want to hear from you. Share your thoughts in the comments or join the conversation on Twitter.
Leave a Reply