One day before the release of the official government jobs numbers for May, the ADP National Employment Report was released today and indicates a modest increase in new jobs last month. The report shows an increase of 133,000 nonfarm private sector jobs in May, one month after similarly anemic numbers in April. The ADP Report is usually a good indicator of what to expect when the U.S. Bureau of Labor Statistics (BLS) releases its monthly Employment Situation Summary; usually immediately following the report from the electronic payroll giant ADP.
The employment data carries even greater weight in the context of the 2012 presidential election as both President Obama and Republican challenger Mitt Romney have made the economy the centerpiece of the fall election campaign. For the President, the economy remains as one of the most stubborn elements of a post-Bush administration hangover that has caused the race for the White House to be much closer than it might be other than for the economic insecurity of Americans.
As has been the trend for some time now, the ADP report reveals the job growth last month was overwhelmingly in the service-providing sector with manufacturing languishing. Where, in terms of industry, jobs are being created is important because it has an impact on wages and wage growth, as well as employee benefits. The largest increase in jobs was in the small business sector, adding 67,000 workers in companies with up to 49 workers. In medium sized companies – with 50 to 499 workers – there was an increase of 57,000 new jobs. Trailing in job growth are large companies employing more than 500 workers. Large company payrolls increased by just 9,000 workers last month.
Tomorrow’s BLS report will provide a more detailed analysis of the nation’s employment picture, by industrial sector, race and ethnicity, and the status of the long-term unemployed.