U.S. Private Employers Only Added 38,000 Jobs Last Month, ADP Finds

Private-sector payroll growth slowed sharply in May, coming in far below expectations and falling to the lowest level in eight months, a report by a payrolls processor showed on Wednesday.

The ADP Employer Services report showed private employers added a scant 38,000 jobs last month, while April private payrolls were revised down to an increase of 177,000 from the previously reported 179,000. Economists surveyed by Reuters had forecast a gain of 175,000 jobs for May.

The report is jointly developed with Macroeconomic Advisers LLC.

"Obviously a much weaker-than-expected report, hinting that Friday's nonfarm data will also be weaker than expected," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto, referring to the U.S. Labor Department's monthly non-farm payrolls report due for Friday.

"We've seen general softening in U.S. data, and that's a concern about how the recovery is maintaining itself. Markets are starting to turn their attention to this."

U.S. stock index futures added to losses following the report, while the greenback extended losses against the yen and euro. Government debt prices extended earlier gains.

The ADP figures come ahead of the government's much more comprehensive labor market report on Friday, which includes both public and private sector employment.

That report is expected to show a rise in overall nonfarm payrolls of 180,000 in May, slowing down from a gain of 244,000 the month before. Private payrolls are expected to come in at 205,000.

Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome.

(Reporting by Leah Schnurr, additional reporting by Steve Johnson, Editing by Chizu Nomiyama)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[pita143]

10:21 AM on 06/05/2011

How about this idea that the Dems put forward........NO ONE who outsources Jobs can even bid on a Government Contracts.....BUT the GOP voted against it 100%. That says a great deal, that tells me that the GOP is less interested in the PEOPLE of the USA and more interested in the CORPORATIONS of the USA.

I do not think that any Company that Outsources jobs should receive a single penny in Tax Cuts, Tax Benefits or Tax Credits at all. If you want to desert this Country and its People, than so be it. When you desert a Country, you no longer can befit from what that country has to offer. Every one of those Corporations that moved overseas should be hit with an Import Fee at the very same level as other Countries that import items to the USA..NO MORE LOOPHOLES.

You want to take jobs overseas, than you do not get to benefit from any Tax Payer funded give backs to Corporations.

[pita143]

10:18 AM on 06/05/2011

A reply I received not long ago.

nornoralee
109 Fans
Become a fan
3 minutes ago (10:12 AM)
Here's a quarter go play in the traffic
--------------------------------------------------------------

At some point in time these CHILDREN need to just go away. I love all the tr0lls who have jacked up their game that has morphed from just lies to now insults.

If you are such a child, that you can not post a reply with a fact or an idea, maybe it is YOU who should go play in traffic and allow the adults to have a discussion.

[jglobe]

11:51 PM on 06/04/2011

Simple math indicates that for the US to return to its December 2007 unemployment, when factoring in the natural growth of the labor force of 90k people a month, the economy will need to add 250k jobs a month for the next 66 months.”
-US Department of Labor-

[jglobe]

11:36 PM on 06/04/2011

For those of you who Don't know but constantly complain about it. Jobs Bill is just another name for Stimulus Package. Throwing money at the problem doesn't fix it, that has been proven time and time again. Jobs Bill = Stimulus Package........Got it.

[pita143]

03:21 PM on 06/04/2011

Someone tried a very feeble attempt to attack a link I sent them that showed that Obama has created more jobs in two years than Bush created in 8 years. That individual sent me a link for Unemployment. Now I guess the individual was confused because Unemployment is not the same as Job Creation, but either way. The individual tried to point out how bad Obama is doing because of the Unemployment figures, but it also appears they never looked at the listing.

http://www.bls.gov/cps/prev_yrs.htm

In 1982 and 1983 Reagan had HIGHER unemployment than Obama has, and Reagan did not have an economic meltdown on his hands. Reagan did not have the GOP who was repeatedly blocking Jobs Bills to insure that the President would look bad. And companies were not sitting on excessive assets and not creating jobs. In fact this was a time that still had a large amount of American Manufacturing Jobs. They had not gone overseas as yet, so in fact the figures under Reagan are far worse then they are under Obama.

[jglobe]

11:46 PM on 06/04/2011

400,000 Census Jobs created. 400,000 Census Jobs now gone. You can't plug a hole in the dam with bubble gum.

[pita143]

08:03 AM on 06/05/2011

Look at the Unemployment figures released by Dept of Labor. Reagan in 82 and 83 had Unemployment at 9.7 and 9.6 and he had NO economic meltdown to contend with. So what was Reagans excuse? HE HAD NONE.

[annyp]

01:17 AM on 06/04/2011

Jobs will take sometime to come back maybe when the bickering stops and employers get some confidence in the economy. Some people don't understand how much foreign investment is put into companies in this country, and with the threat of not raising the debt celing is making investors nervous and they are pulling out their money devaluing that business. They are not hiring. You have a congress that has spent more time on abortions, redefining rape, name calling, threats, etc. instead on getting on with the critical issues of this country. The rest of world sees the media coverage of all this unrest and becomes stressful for everyone including this country. Who cares about Palin on her holiday or Anthony Wiener re his twitter photo, report the real issues and the roadblocks that are causing the problems. Report the facts and put the propaganda aside.

[pita143]

03:24 PM on 06/04/2011

You are right. The Dems wanted to insure that any Company who outsourced jobs would not be able to even bid on Government Contracts and the GOP voted 100% against it. If a company moves operations out of this country, they should get not a single penny of Tax Cuts or Tax Credits at all. They should not be allowed to even bid on a single Government Contract. If those companies want to thumb their nose at the United States, than the United States should be able to give them a one finger salute.

[jglobe]

11:42 PM on 06/04/2011

Didn't Obama just team up with Mr Jeffy from GE, and said that GE didn't have to pay any taxes. Oh ya, and did you know that here in a couple years not a single light bulb will be produced here in the United States....not one. China will produce them all for the US. Production Creates Jobs.

[swins425]

12:13 AM on 06/03/2011

Hows that job plan working out Obama? Expecting 177,00 and ended up with 38,000? Thats ridiculous, I guess running the money machine 24x7 doesn't automatically fix everything.

[pita143]

03:24 PM on 06/04/2011

How is the "laser focus on Jobs and the Economy" working our for Boehner, aka, the Wheeper of the House.

[retie133]

07:08 PM on 06/02/2011

Gee, I thought John Boehner said by extending the Bush tax cuts it would create jobs.I guess he forgot to mention that they would be in China.

[fowlersammy]

01:43 PM on 06/02/2011

Woo-hoo, Summer of Recovery #2! This hope and change is awesome!

[lw1]

06:23 PM on 06/02/2011

We still hope the GOBP will change before they destroy the country.

[Arts4u]

12:41 PM on 06/02/2011

And now we have a former bank teller with two children working as a day laborer......

We are failing our people. Plain and simple.

http://online.wsj.com/article/SB10001424052748704913704575453792265306852.html

[CPA 4 Life]

04:47 PM on 06/02/2011

During the 1990s there did not exist one person in America who went from being a bank teller to a day laborer.

[pita143]

02:56 PM on 06/04/2011

Oh and you can prove that statement? Because I can guarantee that you are wrong. Try doing a search of convictions in Syracuse NY and you will find one that not only went from being a Bank Teller, but also went to being Unemployed because a bank failed. You seem to forget that a number of banks failed in the early 90's. That means many bank tellers were put out of work.

[MrBadExample]

08:31 AM on 06/02/2011

this is the same situation faced by Nixon, Jerry Ford, Jimmy Carter and even Reagan in in first term--If oil prices go up enough, there's no economic growth. Reagan dodged the bullet because oil came online from two big new fields in 1982-84, and OPEC could no longer dictate prices. Nobody expects to find another big oilfield this time, and the fields we're finding in deep water are going to be extremely expensive to drill out. No president can change this. In a better world, Obama could marshal the unemployed to develop alt energy and transition the economy, but the Repubs still believe in 'drill baby drill' and won't spend the money.

[KCate]

08:58 AM on 06/02/2011

"...marshal the unemployed to develop alt energy and transition the economy...

Have you ever started a business that employed anyone?

[Arts4u]

12:43 PM on 06/02/2011

Even if they have not.... they have made their employer lots of money. Two way street.

[MrBadExample]

06:10 PM on 06/02/2011

Okay, mister businessman—what is your plan for getting your employees to and from work if gas prices stay where they are OR GO UP another few dollars per gallon? Will you still have customers for what you do in a world where a gallon of gas is north of $5? This country got the opportunity to dominate the alt-power market thirty-some years ago, but decided to elect an orange-haired actor whose first Presidential act was ripping the solar panels off the White House roof. It sure would be nice to have one of those alt energy deployments in place right now. That said, as a plan B we should be putting together something like the CCC of the 1930’s. We need to rebuild our railroads—especially since it’s pretty clear that the Airline industry can’t survive oil at the prices we’re seeing. We need to retro-fit some of our suburbs for mass transit and walkable shopping. Reality will force us to live smaller on the energy grid whether we want to or not.

[scott713]

12:10 PM on 06/02/2011

marshall the unemployed?? what does that even mean?
how exactly will they "develop" alt energy? by wishing

[hilrbrt]

08:22 AM on 06/02/2011

Our President is a spoiled child who only cares about HIMSELF...needed a father to whack him when he lied as a child...didn't happen

[Mikhail Bullard]

02:15 PM on 06/02/2011

there are really too many idiots in the US.

[Robert SF]

06:26 AM on 06/02/2011

The problem with blaming the current situation on Bush or Obama is that you are left with false assurance that we just need to get the right person in the White House, and all this will go away. But it won't. The current situation wasn't created by Obama or even Bush. It is the result of 30-some years of misguided public policy, so it's going to take a long time to correct, if indeed we can do it.

[Paul Sta]

10:35 PM on 06/02/2011

You are exactly right neither party has any idea how to fix the economy.

[pita143]

02:58 PM on 06/04/2011

You are right, until we get the Corporations and the Businesses away from buying our Politicians we will never get ahead in this country.

[jglobe]

05:38 AM on 06/02/2011

Still better than the 400,000 jobs the Obama administration claimed to have created. Did I mention that those jobs were Census jobs. Oh ya, those jobs have all gone away now.

[snoopydance1984]

01:37 PM on 06/02/2011

I took one of those jobs last year because I there was absolutely nothing where I lived (still isn't), but I hear you and agree with you completely. I'm getting unemployment from the Census Bureau (after having to refile three times), but it's not much at all.

400,000 temporary jobs did not fix this country at all. There are still many census workers like myself who are out of work along with millions of other laid off Americans. I was a keyer for 5 months keying in census data and have a knack for data entry. I can't get a job doing the kind of work I did at the Census Bureau to save my life. I can't even get a job as a receptionist, administrative assistant, or even a retail cashier position and I have a college degree.

This is not the change I voted for.

[lw1]

06:30 PM on 06/02/2011

Obama has been trying to create jobs and republicans have fought him every inch of the way. But don't worry, the top 2% are still making lots of money.

[pita143]

03:01 PM on 06/04/2011

And where is ONE SINGLE JOBS BILL that the GOP and Boehner promised the US? Remember that "laser focus on Jobs and the Economy"? NOT ONE SINGLE JOBS BILL in over 5 months. And you sit back and want to blame the President? How about the fact that the GOP blocked over 12 Jobs bills with filibusters. How about the fact that companies in the US are sitting on excessive assets and are not hiring anyone. And to repeat what a Republican Economist said......they are waiting for the situation to get SO BAD that the Government will give them yet another round of Tax Credits for creating jobs.

Some Americans if they sit back and allow people to go unemployed so they can end up with MORE profits.

[irochfpst]

12:50 AM on 06/02/2011

no surprise at all .