May’s ADP Employment printed a lower than expected +178k.
This is the second lowest ADP print since October, thanks to a sharply revised lower April (from +204k to +163k).
The Goods-producing sector of the economy added 64k jobs in May while the Service-producing segment aded 114k.
Under the covers, only Trade/Transportation saw job losses.
“The hot job market has cooled slightly as the labor market continues to tighten,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
“Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well.”
Mark Zandi, chief economist of Moody’s Analytics, said,
“Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions. Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem.”
Full Infographic below:
Finally, as a reminder, something odd has changed in the ADP vs BLS relationship since Trump was elected…
For years under Obama, ADP significantly underestimate the monthly gains in employment relative to the government. Since Trump’s election ADP has systemically over-estimated?
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