Initial claims for the week ending May 28 fell to 267,000, a decline of 1,000 but lower than the expectation of 270,000. This marks 65 consecutive weeks that the initial claims have been below 300,000. The 4 week moving average, a better gauge was down 1,750 to 276,750.
In May, the private sector added 173,000 new jobs, according to ADP and Moody’s Analytics, less that the 175,000 expected, but higher than the revised 166,000 jobs from April. Year to date, the average has been 188,000 jobs. The gains this month continue to stem from the services sector, which has added 175,000 of the total jobs, manufacturing lost 3,000 and goods-producing companies declined by 1,000.
- Small 1-49 Employees + 76,000
- Midsized 50-499 Employees +63,000
- Large 500 or more Employees + 34,000
According to outplacement firm Challenger, Gray & Christmas, layoffs in the U.S. were at a 5 month low falling to 30,157, representing a decline of 27% from a year ago, and are at the lowest level since December. Year to date, 275,218 jobs have been lost in 2016, which is 13% more the same period in 2015. Leading the cuts again was the energy sector with 7,572 in May, but 60% fewer cuts than in April. Year to date, energy companies have cut 75,232 jobs, 25% more than January through April last year. “Outside of the energy sector, summer can be a time when major business decisions are set aside as companies take stock of strategies initiated in the first quarter. This is also a time when the general pace of business can slow as many employees, including key decision makers, take vacations, and enjoy the fruits of their labors,” said John Challenger, CEO of Challenger, Gray and Christmas.
OPEC decided on no change in policy and no ceiling. The new Saudi Oil Minister Khaled al-Falih, says future production cuts maybe be possible, but not now. Really? Wow, what a surprise.
The ECB left rates unchanged as expected.
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