ADP Payrolls Depict Cooling Labor Market

Group 1 - Private-sector payroll data from ADP for May shows a decrease to 152K jobs, down from a revised 188K in April, marking a month-over-month drop of 23K jobs, the largest decline since January [1][4] - The Services sector added 149K new non-government jobs, while Goods-producing positions only increased by 3K, representing less than 20% of total private-sector employment growth for the month [1][2] - Large companies (over 500 employees) contributed significantly to job creation with 98K new positions, while small businesses lost 10K jobs, indicating a disparity in hiring capabilities [3] Group 2 - The breakdown of job creation shows Trade/Transportation/Utilities leading with 55K jobs, followed by Education/Healthcare at 46K and Construction at 32K, while Manufacturing jobs fell by 20K [2] - Wage gains for those who remained in their jobs averaged 5.0%, while job changers saw an average increase of 7.8%, down from 9% in April [3] - The consensus estimate for the upcoming non-farm payrolls from the U.S. Bureau of Labor Statistics is currently at 190K, with expectations of a weaker number based on recent ADP data [4]