In a survey conducted by Action Economics, the agency has said that the Businesses added 179,000 jobs in the month of May, the payroll processor said on Wednesday. The jobs added were well below the median estimates of the forecasted 210,000 new jobs which were expected to be added.
The government’s closely watched employment reports, which is due on Friday, could show a marked slowdown in the monthly job growth after the reports of a less-than-expected number of jobs added in the businesses.
The ADP reports have been tracked as a possible harbinger for the Labor Department’s employment survey, which tracks both private and public sector total hiring. Both the reports have shown that average job gains were above 200,000 for the months of February and March.
The Labor Department has said in April that job gains totalled 288,000, the highest figures recorded in more than two years, as the economy and job market started to show signs of improvement after a harsh winter weather which kept the growth slow during the first quarter.
Several economists are still sticking to their bullish forecasts for Friday’s reports. The median projections for the total jobs added for the month of May has been said to be 220,000. UBS notes that a measure of service sector employment out Wednesday showed a pickup in last months activity.