The U.S. private sector reportedly managed to add 128,000 jobs in May, a figure that was smaller than expected. At the same time, this figure is also the smallest monthly increase in an era of pandemic recovery based on a report by ADP payroll processors on Thursday.
Survey economists predict that the private sector economy will record an increase of 300,000 jobs last month, but unfortunately it is wrong. The revised April figure also showed a drop to a reading of 202,000 from a profit of 247,000 initially reported.
According to ADP chief economist Nela Richardson, "The reality so far is that against the backdrop of a tight labor market and high inflation, then monthly employment gains are closer to pre-pandemic levels."
He added, "The rate of employment growth in recruitment has eased in all industries, while small businesses remain a source of concern as they face the challenge of competing with larger firms that have grown rapidly in recent times".
The ADP figures were published earlier than the Labor Department's weekly report on early unemployment claims late Thursday and the May NFP report on Friday.
Data on Friday is expected to show that the economy will add 325,000 jobs last month, down from 428,000 in April. While still strong, it will represent the smallest job growth in a year.
Wage growth is expected to remain strong amid labor shortages and the unemployment rate is expected to decline to 3.5%.
