Private sector jobs increased by 135,000 in May from April's 113,000, but this rise still fell short of the expectations of the economists and the Labor Department, according to a latest report from ADP.
Automatic Data Processing Inc. released a report, which shows that 135,000 private -sector positions were added in May, a brief increase from 113,000 positions in April. Although the private-sector employment saw an increase, it fell short of expectations of economists and the Labor Department.
The ADP's actual payroll data shows a decline in Total Nonfarm Private Employment since the beginning of the year 2013. February's job gains saw the highest addition with 198,000, which fell to 154,000 in March and then the lowest in April to 113,000.
"U.S. private sector employment increased by 135,000 jobs during the month of May 2013, a slight increase over the previous month of April," Carlos A. Rodriguez, president and chief executive officer of ADP, said in a press release. "The majority of new jobs in May came from the service-providing sector, which added a total of 138,000 jobs, while the goods-producing sector recorded a loss of 3,000 jobs. Notably, a gain of 5,000 jobs in the construction industry during May was offset by a decline of 6,000 lost jobs in the manufacturing industry."
Economists surveyed by Bloomberg News estimated the May job gains to reach about 167,000, while a report from MarketWatch said that the economists expect the government report, to be released on Friday, to increase job gains by 175,000 in May. But ADP's report showing an increase of 150,000 net new jobs in May does not promise a significant impact in bringing down unemployment.
Mark Zandi, chief economist of Moody's Analytics, which produces the report for ADP, said the reason for the "softer job market this spring is largely due to significant fiscal drag from tax increases and government spending cuts."
According to the ADP report, the private-sector employers added 138,000 jobs in May, while medium and large business added 40,000 jobs each. Small businesses added 60,000 jobs while the manufacturing sector shed 6,000 jobs.
The ADP National Employment Report is produced by ADP, one of the world's largest providers of business outsourcing and human capital management solutions, and Moody's Analytics. Macroeconomic Advisers were the compiler of the data before Moody's Analytics replaced it in October last year.
