ADP Research Institute on Wednesday released its estimate of private-sector job growth for May and dropped a few jaws. Not only did the news of just 27,000 new jobs being created for the month send
gold prices soaring 1%, but it also sparked a
Wall Street Journal story about how ADP gets no respect because it so often misses the jobs estimate put together each month by the Bureau of Labor Statistics.
Sure enough, the BLS announced Friday morning that the economy had generated 90,000 seasonally adjusted non-farm jobs in the private sector in May, but shed 15,000 jobs in the public sector, for a net gain of 75,000.
While that was nearly three times what ADP had estimated, it was 100,000 fewer jobs than the consensus of experts surveyed earlier in the week. Moreover, the previous estimate for job gains in April was revised from 263,000 to 224,000, and in March from 189,000 to 153,000. That lowered the gains for those two months by 75,000. The bureau includes as employed anyone who has worked even a single hour during the survey period, which takes place around the 12th of each month.
The poor jobs report isn't the only bad economic sign: The bond market is screaming 'recession'
Revised down. Again.
