Economists were disappointed Thursday amid the ADP’s underwhelming jobs report despite the country hitting yet another post-pandemic low on the road to economic recovery.
From April to May, private sector employment increased by 978,000 jobs according to the agency’s preliminary report ahead of the Department of Labor’s official tally to be released Friday.
Service-providing industries saw the biggest overall gain with a combined 850,000 jobs in leisure and hospitality, health services, trade, transportation, and utilities, respectively.
More industries that saw significant gains include professional and business services, education, financial activities, and others.
Nela Richardson, ADP’s chief economist, called the report a “marked improvement” reflecting “the strongest gain since the early days of the recovery,” referring to massive jobs gains the economy saw last Fall, The Hill reported.
But the Biden administration is not as optimistic, as reports published by the ADP and Department of Labor often have large discrepancies.
White House officials reportedly told Fox News they are not relying on any specific report for accurate jobs numbers. Rather, the administration is more concerned about the overall economic trends which they believe are going the right direction at this time.
Fox News’ sources added they expect to see more “ups and downs” as the economy continues to recover from last year’s government-imposed lockdowns.
The Federal Reserve’s Beige Book that was released on Wednesday shows the economy is still growing moderately despite its disappointing jobs gains as of late, according to MarketWatch.
“The Fed is stealthily planting the seeds for normalizing monetary policy, which could become the dominant market theme by the late summer or fall, assuming US economic data remains strong,” wrote Marios Hadjikyriacos, XM investment analyst, MarketWatch reported.
As of now, the economy appears on track to continue improving amid rising vaccinations and decreasing unemployment benefits.