ADP Sets Disappointing Tone for Unemployment and Payrolls From Labor Department
ADP's report on private sector payroll growth in May may have just dashed some of the expectations for Friday's key unemployment and payrolls report. ADP reported that private sector employment increased by only 179,000 jobs in May. Both Bloomberg and Dow Jones were calling for 210,000 from the May ADP National Employment Report.
The report is derived from ADP's actual payroll data and measures the change in total nonfarm private employment each month on a seasonally adjusted basis.
Small businesses were the key driver as they added 82,000 payrolls. Medium-sized business added 61,000 jobs and large businesses turned in a disappointing 37,000 new payrolls.
Futures have remained weak on the report as S&P futures are down 3.25 and DJIA futures are down about 20 points.
The breakdown by sector was as follows:
- Construction added 14,000.
- Manufacturing added 10,000.
- Trade/transportation/utilities added 35,000.
- Financial added 6,000.
- Professional & Business Services added 46,000.
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Filed under: Economy