The United States economy added 173,000 jobs in May, but job growth cooled down compared to 2016’s monthly average of 188,000, says a new report released Thursday from ADP and Moody’s Analytics.
According to the private payrolls count, the service sector accounted for all of the job creation in May. The service sector added 175,000 positions, while other sectors dropped off. The report found that goods-producing firms lost 1,000 jobs and the manufacturing sector shed 3,000 jobs.
Small businesses created the most jobs with an additional 76,000 positions. This was followed by medium-sized businesses with 63,000 jobs added. Large companies added just 34,000.
“Job creation appears to have slowed as we move further into 2016,” said Ahu Yildirmaz, head of the ADP Research Institute, in a statement. “Challenging global conditions affecting hiring at large companies and a tightening labor market for skilled workers are among the factors that may be contributing to the slowdown.”
May’s labor numbers will likely be taken into account by the Federal Reserve when they meet later this month. The Federal Open Market Committee (FOMC) is expected to agree on an increase to interest rates, the second one in a matter of several months.
Weak employment numbers=go ahead and raise interest rates=recession 2017.