US Private Employment Sees Largest Increase in a Year... NY Stock Market Starts Weak

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] A "green light" has been turned on for the U.S. May employment report, which is just one day away. This is because an analysis showed that private employment increased by about 1 million in May.

Private employment data processor ADP announced on the 3rd (local time) that private sector job growth in May reached 970,000. This far exceeded the expected 680,000. It is also the highest figure since June last year, when 4.35 million new jobs were created.

May private employment showed a more remarkable increase compared to April’s 654,000. April employment was initially reported as 742,000 but was later revised downward.

ADP identified that employment in the hospitality sector increased significantly. In this sector alone, 440,000 jobs were added within a month. Overall, 850,000 jobs were created in the service industry, and 128,000 in manufacturing.

ADP’s announcement is regarded as a barometer for the U.S. Department of Labor’s May employment report scheduled for release the next day. The April employment report had anticipated 1 million new jobs but only showed an increase of 260,000.

CNBC predicted that the May employment report could differ significantly from April’s. Dow Jones forecasted that nonfarm payrolls for May would reach 671,000.

The number of new unemployment claims announced by the U.S. Department of Labor on the same day was also favorable.The Department of Labor reported that new unemployment claims for the week of May 23?29 totaled 385,000, dropping below 400,000 for the first time since the COVID-19 crisis.

On the day, U.S. Treasury yields showed a slight upward trend. The 10-year Treasury yield rose by 0.024 percentage points from the previous day to 1.615.

Major New York stock indices all opened lower. As of 9:35 a.m., the Dow Jones Industrial Average was down 0.52%, the S&P 500 was down 0.58%, and the Nasdaq was down 0.7%.