ADP: Modest Gain

June 2, 2016
Bottom Line: Private sector employment rose modestly in May, in line with expectations as Professional/Business services hiring increased modestly, adding 43k jobs while goods producing industries hiring declined slightly. ADP data do not account for government workers which are included in the Employment Situation headline number. This report would suggest slight upside risk to the 160k consensus for Friday. ADP National Employment ROSE by 173k in May, in line with the consensus estimate. Meanwhile, the revisions to the prior 3 months added an additional 17k to the previous estimate. This was the 70th consecutive monthly increase in private payrolls. Over the past 12 months, private payrolls have increased by an average of 203k per month, lifting employment to 2.0% ABOVE its year ago level. Jobs in Goods-Producing Industries FELL by 1k jobs and Manufacturing lost 3k workers. Meanwhile, Construction gained 13k jobs. Moreover, Service-Producing Industries ROSE by 175k jobs with Professional/Business Services hiring 43k workers, Trade/Transport/Utilities adding 28k, and Financial Activities increasing by 13k workers. Small Firms hired 76k workers, Medium-Sized Firms grew by 63k employees while Large Firms added 34k positions.
Article by contingentmacro