Following April's strong beat on ADP employment (talked down with zeal by Mark Zandi), May was expected to show slowing growth in employment but instead it collapsed.

ADP reports that America added just 27k jobs in May (185k exp). This is the weakest growth since March 2010.



“Following an overly strong April, May marked the smallest gain since the expansion began,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”

Small business employment collapsed by 52k (large business rose) with very small (1-19 people) plunging...

Goods producing jobs tumbled as Services rose...

Construction jobs plummeted...

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is moderating. Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting. "

Great news for The Fed.