A new report released today by the Automatic Data Processing, Inc. [ADP], shows that the U.S. private sector slashed 532,000 jobs in May, a small decrease from April’s final tally, and slightly higher then many expected. Economists had expected a decrease of about 525,000 jobs compared to the decline of 491,000 jobs originally reported for the previous month, which was revised by 54,000 to a decline of 545,000.
From ADP: May’s ADP Report estimates nonfarm private employment in the service-providing sector fell by 265,000. Employment in the goods-producing sector declined 267,000, with employment in the manufacturing sector dropping 149,000, its thirty-ninth consecutive monthly decline.
In May, construction employment dropped 108,000. This was its twenty-eighth consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,345,000. Employment in the financial services sector dropped 32,000, the eighteenth consecutive monthly decline.
Today’s report shows that despite the recent increase in consumer spending, as well as house sales on the rise, the economy, though at a slower pace, is still receding and that the job market in particular remains under serious strain.