Report: Jobs data show labor market improving
New York City U.S. private-sector employers added jobs in May and the economy's dominant services sector increased payrolls for the first time in more than two years, according to an ADP Employer Services report.
New claims for unemployment insurance also fell last week, leaving investors braced for more good news on Friday, when the government's employment report is expected to show the economy added more jobs in May than at any time since September 1983.
Private employers added 55,000 jobs last month, which is a sign of improved conditions. April's job gain was revised upward to 65,000 from an initially reported tally of 32,000.
Economists expect Friday's more closely watched payrolls report, which includes private- and public-sector jobs, to show that the economy added 513,000 jobs in May and the jobless rate dropped to 9.8%, from 9.9% in April.