The release of last month’s Private Payrolls data in the US disappointed markets after May’s increase was less than markets had anticipated.
The ADP National Employment Report showed on Thursday that Private Payrolls data in the world’s largest economy increased by 128,000 jobs in May. Last month’s Private Payrolls data was far lower than the market expectations for an increase of 300,000.
May’s 128,000 increase was also the smallest monthly gain of the pandemic-era recovery.
To add further salt to the wound, the Private Payrolls Data for April was revised down to show only 202,000 jobs added instead of the 247,000 that was initially reported.
It is difficult to gauge the state of the US job market at the market. Whilst private payrolls were disappointed by missing expectations by some considerable amount, there was some positive enough news in the initial jobless claims data, also released on Thursday, which tempered losses in the US Dollar.
Initial Jobless Claims Drops to 200k
The Labor Department reported on Thursday that the number of people making initial claims for jobless benefits in the US declined to 200,000 last week from an upwardly revised 211,000 from the previous week.
Providing an additional boost was a decline in the number of people making continuing claims. The number of those making continuing claims fell to 1.309 million. Meanwhile, the previous week’s numbers were also revised down.
Important Non-farm Payrolls Data Ahead
All investor eyes will be on the release of the non-farm payolls data later on Friday.
market expectations are for the economy to have created 325,000 jobs in May. This would represent the slowest rate of job creation for approximately a year. Wage growth is expected to remain solid whilst the shortage of workers continues and the unemployment rate is expected to ease even lower to 3.5%.
