Private-sector hiring in May hit the slowest pace in four months as service providers decreased their rate of hiring, according to data released Wednesday morning.
Employers in the private sector added 179,000 jobs in May — the fewest new positions since January — down from 215,000 in April, Automatic Data Processing Inc. reported. Economists polled by Dow Jones Newswires had expected a May gain of 210,000 private-sector jobs, compared with an originally estimated increase of 220,000 jobs in April.
“The job market has yet to break out from the pace of growth that has prevailed over the last three years,” said Mark Zandi, chief economist of Moody’s Analytics, which prepares the report using data from ADP.
However, longer-term trends look more promising, as May’s private-sector hiring was up from a gain of 163,000 jobs in the year-earlier period. And the three-month moving average, which smoothes out some monthly volatility, shows that private-sector employers added an average of 198,000 jobs per month over the quarter through May, up from 153,000 during the year-earlier period.
Details of ADP’s report show that private-sector service providers added 150,000 jobs in May, down from an increase of 194,000 in April. Meanwhile, goods producers added 29,000 jobs in May, up from 21,000 in April. By company size, small businesses added 82,000 private-sector jobs in May, medium businesses added 61,000 and large businesses added 37,000.
Economists use ADP’s data to get a feeling for the U.S. Labor Department’s employment report, which will be released Friday and covers government jobs in addition to the private sector. Economists polled by MarketWatch expect the government’s report to show that nonfarm employment rose by 210,000 jobs in May, compared with a gain of 288,000 jobs in April.
A variety of labor-market data signal that the country’s jobs environment is continuing to heal, though at a slower pace than economists would like. Weekly claims forunemployment-insurance benefits are near the lowest levels since the recession ended. And workers see greater career opportunities, though many remain cautious over quitting .
Source: Marketwatch
