The U.S. economy picked up 38,000 jobs from April to May, roughly a fifth of what some economists expected and the smallest increase since September. The seasonally adjusted numbers were included in Wednesday's ADP National Employment Report.
The report suggests that employment growth slowed dramatically in May, falling below analysts’ projections; the median estimate in a Bloomberg survey of economists was 175,000. Still, the ADP numbers are not always a good indicator of the official jobs report from the Labor Department, due out Friday.
The ADP report estimates employment in the service-providing sector rose by 48,000, while employment in the goods-producing sector fell 10,000, following six months of increases. Manufacturing employment fell 9,000 in May, following seven consecutive monthly gains. The estimated increase in jobs from March to April was revised down slightly to 177,000 from the previously reported increase of 179,000.