Private companies in the US created new jobs in May, below expectations. According to the latest data released by the ADP Research Institute, which publishes employment data, the private sector created 128,000 new jobs in the US in May. Expectations were that around 250-300 thousand new jobs would be created.
The new employment data in April was revised from 247 thousand to 202 thousand. The data reveal that small-scale businesses have difficulties in creating new jobs. Accordingly, new employment in companies with less than 50 employees decreased by 91 thousand. Employment was provided for 97 people in medium-sized companies and 122 thousand people in large-scale companies. Thus, a total of 128 thousand new jobs were created in May.
Unemployment benefits dropped
Although new jobs fell short of expectations, applications for unemployment benefits fell to a record low in May due to the fact that there are still more than 10 million vacancies in the USA.
According to the weekly data released by the US Department of Labor, applications for unemployment benefits decreased by 11 thousand compared to the previous week and fell to 200 thousand in the last week of May. Applications fell short of economists’ estimates.
The total number of people who have already applied for unemployment benefits fell to a record level before the last week of May and fell to 1 million 310 thousand people. This number was recorded as the lowest level seen since 1969.