Date: Thursday 31 May 2012
The US private sector added fewer-than-expected jobs in May, according to payrolls processor Automatic Data Procssing (ADP).
Some 133,000 jobs were created in the private sector this month, ADP said, while April’s reading was revised lower from 119,000 to 113,000. The consensus estimate was for 150,000 new jobs to be added.
The report showed that 132,000 jobs were created in the service sector and 8,000 in financial services. Manufacturing and construction lost 2,000 and 1,000 jobs respectively.
By company size: 67,000 jobs were created by small businesses (up to 49 workers); 57,000 jobs were created by medium-sized businesses (50 - 499 workers); and 9,000 jobs were created by large companies (over 500 workers).
The latest ADP report was worse than expected, "especially if we add in that the previous figures were revised to the downside," say analysts at Digital Look.
"This is a negative indication of what may come in the monthly US Employment Report to be released on Friday. It is estimated that 200,000 jobs need to be created each month in order to lower the unemployment rate, which currently stands at 8.1%.
"It appears that the jobs market will be weaker than expected in the second quarter of the year. The data is negative for the dollar and equities while positive for bonds."
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