The U.S. economy added 178,000 private, non-farm jobs in May according to the monthly employment report released today by payroll-management firm ADP and its partner Moody's Analytics. The seasonally adjusted result is 9.2 percent higher than April's downwardly revised addition of 163,000 jobs, and marks a 13.48 percent decrease from last May, when 202,000 jobs were created.
“The hot job market has cooled slightly as the labor market continues to tighten,” said ADP Research Institute vice president and co-head Ahu Yildirmaz in a press release. “Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well.”
“Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions,” said Moody's Analytics chief economist Mark Zandi. “Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem.”
Small businesses—firms that employ between one and 49 employees—gained 38,000 jobs in May. Within that data set, firms that employ fewer than 20 people added 15,000 jobs, and firms that have 20 to 49 employees created 23,000 new positions. Mid-sized businesses—those with 50 to 499 employees—accounted for the largest share of employment gains by company size for the seventh consecutive month, with 84,000 positions added. Large businesses consisting of 500 employees or more added 56,000 jobs. Within that figure, businesses employing 500 to 999 people gained 23,000 jobs, and companies with 1,000 or more employees added 34,000 positions.
The service-providing sector—which has anchored the ADP's job report for 14 consecutive months—contributed 64 percent (114,000) of total job gains in May. The service-providing sector includes jobs in professional and business services; trade/transportation/utilities; information; financial activities; education and health; leisure and hospitality; and other services. Six of the seven subsectors experienced growth in May, with only the trade/transportation/utilities subsector reporting a decrease of 23,000 jobs.
Employment in the professional and business services subsector—which includes architecture and engineering firms—marked 60.5 increase from last month. The subsector added 61,000 jobs, accounting for 53.5 percent of all service-providing sector jobs added in May.
The goods-producing sector, which includes jobs in natural resources and mining, construction, and manufacturing, added 64,000 jobs. The construction subsector saw an increase of 39,000 jobs, accounting for 60.93 percent of all jobs added in the goods-producing sector in May. Employment in the natural resources/mining subsector was modest, with the addition of 11,000 employees, while the manufacturing subsector added 14,000 new positions.
ADP's national employment report is often used as a precursor for the monthly Bureau of Labor Statistics jobs report, which will release its May edition on Friday.
For more information, read the full employment report from ADP.