The Automatic Data Processing (ADP) report released this morning found that 133,000 net new jobs were added to the economy in May. This is slightly higher than the revised increase of 119,000 in April. Almost all of these gains stemmed from the service sector. Mirroring past reports, all but 9,000 of the net increase came from small and medium-sized businesses (e.g., those with less than 500 employees).
Reflecting recent weaknesses, manufacturers shed 2,000 workers. This was the second consecutive decline, with a 6,000 worker decrease observed in March. Still, even with these losses, the year-to-date gain is 55,000. Note that ADP’s estimates are lower than the official data from BLS, with 167,000 net new jobs added to the sector in the past five months.
Tomorrow, the Bureau of Labor Statistics will release the latest government statistics on employment. Last month, manufacturers added 20,000 workers in April. I would expect the increase to be lower than in April, but we will have to see if BLS finds a decline as well.
Chad Moutray is chief economist, National Association of Manufacturers.
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