May ADP Employment Report Falls Short and Massive April Revision
The ADP Employment Report was released Wednesday morning and it fell short of Bloomberg estimates. Nonfarm private sector employment dropped to 178,000 for the month of May, missing expectations for 187,000, within the consensus range of 180,000 to 225,000.
April’s nonfarm private payrolls had come in at 204,000, but that was revised down to 163,000.
In May’s report, small business contributed 38,000, midsized business contributed 84,000 and large business contributed only 56,000 to the private sector payrolls.
The goods-producing sector contributed 64,000 to the number, consisting of increases of 39,000 and 14,000 in construction and manufacturing, respectively. Natural resources and mining increased by 11,000.
The service-providing sector had a total of 114,000 private payrolls, with its segments reporting as follows:
- Trade, Transportation & Utilities decreased 23,000.
- Information increased 2,000.
- Financial Activities increased 2,000.
- Professional & Business increased 61,000.
- Education & Health increased 35,000.
- Leisure & Hospitality increased 33,000.
- Other Services increased 5,000.