Private sector adds 55,000 jobs in May

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Private-sector employers added jobs for the fourth month in a row in May, according to a survey released Thursday by a payroll processor.

Automatic Data Processing, which processes paychecks for one in every six U.S. employees, said private-sector employers added 55,000 jobs to their payrolls in May, down from a upwardly revised 65,000 increase in April.

The May increase fell short of the 60,000 jobs economists surveyed by Briefing.com forecasted for the report.

From February to May, the report has shown a monthly average increase of 39,000 jobs, in line with a slow recovery economists are seeing from other surveys. Friday's government jobs report is also expected to show modest job growth, after economists account for a large boost from temporary census hires, said Tim Quinlan, an economist with Wells Fargo Securities.

"It is a very slow recovery, but a recovery nonetheless," he said. "We're growing jobs at a fast enough pace to keep unemployment rate where it is, or slightly lower, but we're not looking at a quick, snapback recovery that many people were hoping for."

According to ADP, the service sector reported an increase of 78,000 jobs, its fifth consecutive monthly gain, while manufacturing payrolls grew by 15,000 jobs. Those gains were offset by losses in the goods-producing sector, which declined by 23,000 jobs.

Construction and financial services jobs showed big monthly declines, as they have for more than two years.

ADP breaks out job trends across categories for small, medium and large businesses -- all three of which showed job growth in May.

The ADP report follows on the heels of a separate jobs number released Wednesday by outplacement firm Challenger, Gray & Christmas Inc.

According to Challenger, planned job cuts inched 1.3% higher in May, driven by shrinking government payrolls, but the pace of downsizing continued to slow. Employers announced plans to cut 38,810 jobs in May, up from April's four-year low of 38,326.

Many economists view the Challenger and ADP reports as a preview of things to come from the government's national unemployment number due on Friday. Economists are forecasting the government's report to show employers added 500,000 jobs in May after expanding payrolls by 290,000 jobs the month before.

Unlike the ADP report, that number also includes government census hires, not just jobs created by private employers.

The national unemployment rate, based on a separate survey, is forecast to ease slightly to 9.8% from 9.9%. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,086.63 -26.91 -0.16%
Nasdaq 4,473.70 0.00 0.00%
S&P 500 1,987.01 3.48 0.18%
Treasuries 2.46 -0.00 -0.08%
Data as of 5:09am ET
Company Price Change % Change
Apple Inc 97.19 2.47 2.61%
Facebook Inc 71.29 2.02 2.92%
Microsoft Corp 44.87 0.04 0.09%
EMC Corp 28.75 0.23 0.81%
Bank of America Corp... 15.52 0.00 0.00%
Data as of Jul 23

Sections

McDonald's is standing by a troubled meat supplier, even after allegations the company was selling tainted and expired meat. More

With cost-cutting at the U.S. Postal Service more letter carriers are working later and later to deliver your mail. About 38% of mail is delivered after 5 p.m. in cities nationwide. And areas like Atlanta, Washington and South Florida, it's 70%. More

Like many of its Silicon Valley peers, Twitter workers are mostly male and white according to a diversity report released by the company Wednesday. More

As 65,000 IDF reservists are tapped to serve in Gaza, Israeli's tech community tries to maintain business as usual, amidst bombs, sirens and employees called to war. More

Chinese buyers are now the biggest international players in the U.S. housing market and some states are seeing billions of dollars in real estate deals as a result. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.