US ADP report shows only 27k private sector job growth in May, way below expectation of 185k. Looking at the details, small businesses lose -52k job, offsetting 11k growth in medium business and 68k in large businesses. Goods producing sectors lost -43k jobs, while service-providing sector gained 71k.
“Following an overly strong April, May marked the smallest gain since the expansion began,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”
Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is moderating. Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
