According to data released on Wednesday, the private sector employment in the U.S. added more jobs in May.According to an ADP report, the private sector added 201,000 jobs in May which marked the highest level in the last four months. In April, an increase of 169,000 was reported while ADP revised this gain to 165,000.
The data showed that large businesses added 13000 jobs; medium businesses added 65,000 jobs while small businesses gained 122,000 jobs.
In a poll conducted by Dow Jones Newswires, economists had expectations for a gain of 215,000 jobs in May.
Investors have now shifted their focus to the U.S. labor market report from the Labor Department, which will be released on Friday.
Meanwhile, chief economist at Moody’s Analytics, Mark Zandi, commented that the job market posted an overall solid gain in May and that the economy will be back in full swing by this time next year if the trend in job growth continues.
Other data released showed that private service providers contributed most of May’s job growth by adding 192,000 jobs which comprise 96% of the total, compared to 9,000 jobs added by goods producers.
U.S. macro and rates strategist at TD Securities, Cheng Chen, commented that the data suggests growth in U.S. labor market which should continue despite the slow pace of employment gains compared to levels seen last year.
Usually, economists use ADP’s data to get a hint of the U.S. Labor Department’s employment report which is due to be released on Friday this week. The report covers the private sector as well as government jobs.
Meanwhile, in a poll conducted by MarketWatch, economists expect the report on Friday to show a 210,000 job rise last month compared to 223,000 jobs in April.