US companies added 179,000 jobs in May

Written By Unknown on Rabu, 04 Juni 2014 | 21.29

US businesses pulled back on hiring in May, adding the fewest jobs in four months, a private survey shows.

Payroll processor ADP said on Wednesday that private employers added 179,000 jobs last month, down from 215,000 in the previous month. April's figure was revised slightly lower. Still, the gain in May was in line with the ADP's average monthly hiring figures for the past 12 months.

The data suggest that the government's jobs report, to be released on Friday, could also show a modest slowdown from April's big gain of 288,000 jobs.

But the ADP numbers cover only private businesses and often diverge from the government's more comprehensive report.

Economists forecast that the government's figures will show that employers added 220,000 jobs in May, according to a survey by FactSet.

Hiring appears to be holding steady even though the economy shrank in the first three months of the year at a one per cent annual rate, the first contraction in three years.

Most of the slowdown has been blamed on unseasonably cold weather, which shut factories, disrupted shipping, and kept shoppers away from stores and malls.

"The labour market remains strong and the economy is still recovering from the weather-induced hit in the first quarter," Paul Dales, senior US economist at Capital Economics, said in a note to clients.

The slowdown in the ADP figures occurred mostly in professional and business services, a category that includes many higher-paying jobs such as accountants and engineers, but also lower-paid temporary workers.


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