ADP said 133k private sector jobs were added in May, 17k below expectations and compares with 113k in April which was revised down by 6k. Of the 133k net jobs added, 132k was in the service sector and mostly led by small and medium sized businesses. The goods producing area thus added only 1k jobs (mfr’g fell by 2k). Bottom line, the warmer than usual Nov thru Mar time frame saw an average monthly job gain of 221k so today’s lame figure could be due in part to the weather give back that was seen also in April but it’s also easy to argue that the moderation in the overall global economy had an impact in the lackluster gain.
After 4 straight weeks in the 370k range, Initial Jobless Claims totaled 383k, 13k above estimates. While the data is for the week ended Saturday, 5 states did estimate their figures because of Monday’s holiday but the Labor Dept said there was nothing unusual in the report. The 4 week avg rose to 375k from 371k. Continuing claims fell by 36k while Extended Benefits were flat. Bottom line, as also seen in the ADP report, the labor market is no better than just ok.
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