The latest ADP private payrolls report came in stronger than expected, an encouraging signal just a couple of days ahead of the monthly employment report. Bobbi Rebell reports.
Some relief for millennials getting into the workforce. The latest ADP report showed private employers added 201,000 jobs in May, the most since January. JPMorgan Chase senior economist Jim Glassman. SOUNDBITE: JIM GLASSMAN, SENIOR ECONOMIST, JPMORGAN CHASE (ENGLISH) SAYING: "The market is becoming more attractive for young people, people coming out of college, so, as the job market gets stronger, we are going to be pulling back a lot of people who dropped out earlier, and that will slow the progress on the unemployment rate." Millenials are now the largest generation in the workforce, according to Pew Research. The ADP number out just a couple of days ahead of the big monthly jobs report. Economists polled by Reuters expect 225,000 new jobs in May, and the unemployment rate holding steady at a near seven-year low of 5.4 percent. Another report echoed the improving U.S. economic strength. The U.S. trade deficit narrowed more than expected in April on a drop in imports, which surged in March following the end of a West Coast ports labor dispute. But Mizuho Securities' Steve Ricchiuto is concerned about the drop. SOUNDBITE: STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "Imports continue to go down rapidly, and, I think, that is telling you consumers are not really spending a lot of money." And two private reports from Markit and ISM signaled slower growth in the U.S. services sector. The sector had been propping up the economy, but now faces drags from a strong dollar, a recent rise in oil costs and sluggish demand abroad.