New figures show that the US private sector added few jobs in May as employers faced rising signs that the country's economy is entering a weak patch in a long recovery from recession.
Recruitment firm ADP said the private sector added 38,000 jobs in May, after a gain of 177,000 in April.
The sharp slowdown was well below expectations for 170,000 new jobs and offered a warning signal ahead of the US government's May jobs data due on Friday.
ADP said the slowdown was disappointing, but 'not entirely surprising' given the US economy's weakening recovery from recession. The US economy expanded at a 1.8% rate in the first quarter of 2011.
Employment in the services sector, which accounts for the bulk of US economic output, rose for the 17th consecutive month, by 48,000. Jobs were lost in the goods-producing sector for the first time after six straight months of increases, falling by 10,000.
The embattled construction industry, reeling from the collapse of a housing bubble more than four years ago, shed 8,000 jobs, reversing April's gain. Since its peak in January 2007, it has lost 2.1 million jobs.
Slump seen in US manufacturing
Growth in the US manufacturing sector slumped markedly in May, according to data published today, the latest sign of a slowing economic recovery.
A drop in new orders and production sent a keenly watched barometer of the sector downward, at a much more rapid pace than expected.
The Institute of Supply Management said its manufacturing index dropped nearly seven percentage points from April, to 53.5%. New orders alone dropped by almost a fifth.
'Slower growth in new orders and production are the primary contributors to this month's lower reading,' the institute said.
The news comes on the back of indicators showing the housing and jobs sectors are in difficulty.
