(ADP report updated with analyst commentary, additional information)
NEW YORK (TheStreet) -- Companies created far fewer jobs than expected in May, as the economic recovery showed signs of losing momentum.
According to ADP's May Employment Report, the private sector added 38,000 jobs in May on a seasonally adjusted basis. That was well below consensus estimates of 170,000.
The report also revised downwards the estimated change from March to April to 177,000 from 179,000."A deceleration in employment, while disappointing, is not entirely surprising," the report said. "In the first quarter, GDP grew at only a 1.8% rate and only about 2¼% over the last four quarters. This is below most economists' estimate of the economy's potential growth rate and normally would be associated with very weak growth of employment."
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