Published: Fri, June 07, 2019
Markets | By Otis Pena

U.S. private sector adds fewest jobs in May since 2010 -ADP

U.S. private sector adds fewest jobs in May since 2010 -ADP

Data from the report showed that employment in the goods-producing sector had only increased by 43,000 jobs in May, the lowest number in almost two years.

While we will await the official data from the U.S. Bureau of Labor Statistics (BLS) - which is scheduled to be released on Friday - the early report from private sector analyst ADP was nothing short of a disaster. Trump announced last week that he would impose a tariff on all goods from Mexico in a bid to stem the tide of illegal immigration across the U.S. "Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting", Mark Zandi, chief economist of Moody's Analytics, said.

Stock futures pared gains Wednesday morning following the report, with contracts on the Dow retreating from advances of more than 150 points earlier in the session.

Roseland, NJ, June 5, 2019-Private sector employment increased by 27,000 jobs from April to May, according to the May ADP National Employment Report. In a speech Tuesday, Fed Chairman Jerome Powell said the central bank is prepared to "act as appropriate" to keep the expansion going, which markets took as an encouraging sign that policy easing could be on the way.

Zdeno Chara participates in morning skate with Bruins
The fans responded with a vulgar chant and a shower of rally towels; the public address announcer eventually asked them to stop. Louis when being forced to play with five defensemen, when Matt Grzelcyk was injured in Game 2, and Chara in Game 4.

Markets are betting that the Federal Reserve steps in with at least two and possibly three rate cuts this year. The ADP report, which is jointly developed with Moody's Analytics, has a poor record predicting the private payrolls component of the government's employment report. By contrast, ADP estimated job growth in April expanded more than ten times as fast - with the economy adding 275,000 new positions (a number that was nearly identical to the government figure).

Construction lost 36,000. Natural resources and mining jobs declined 4,000 and manufacturing jobs shrank by 3,000. A weaker global economy and fading stimulus from the Trump administration's tax cuts is dragging on the USA economy. The leisure and hospitality industry gained 16,000 jobs while the education and health sector gained more than double that, adding 33,000 positions. CNBC's Rapid Update survey forecasts gains of just 1.7% in the second quarter.

Economists polled by Reuters are forecasting non-farm payrolls to have increased 185,000 in May.

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