The non-farm private sector added 173,000 jobs in May, according to the ADP National Employment report, an increase from April’s upwardly revised growth of 166,000. Service-providing employment provided all of the month’s growth, while the goods-producing sector shed jobs during the month.
Small businesses with fewer than 50 employees added 76,000 jobs, down from 101,000 in April. Medium-sized businesses with 50-499 employees added 63,000 jobs, up from 39,000 last month. Large businesses added 34,000 jobs, up from 25,000 in April.
“Job creation appears to have slowed as we move further into 2016,” Said Ahu Yildirmaz, Vice President of the ADP Research Institute. “Challenging global conditions affecting hiring at large companies and a tightening labor market for skilled workers are among the factors that may be contributing to the slowdown.”
Service providing employment rose by 175,000 jobs, up from 173,000 in April, as the professional and business services and trade-transportation and utilities sectors saw significant job growth during the month.
Goods-producing employment contracted by 1,000 in May, following a 7,000 job contraction in April. Manufacturing employment led the losses in the goods-producing sector, shedding 3,000 jobs during the month.
Read the ADP release.