Nonfarm private-sector employment rose by a seasonally adjusted 179,000 jobs in May, according to the Automatic Data Processing (NASDAQ:ADP) National Employment Report (link opens in PDF) released today.
After employment increased by a revised 215,000 jobs in April, analysts had expected May's number to clock in at 210,000 new jobs. While initial jobless claims have been trending lower over the past few months, repeatedly hitting post-recession lows, this latest report proves that the labor market's road to recovery isn't without bumps.
ADP, a human capital management company, partners with Moody's Analytics to produce this monthly report based on ADP payroll data representing 416,000 U.S. clients that employ nearly 24 million workers in the nation. It covers private employers, not government.
Divvying up employment by company size, small businesses (1-49 workers) were the biggest booster in May, adding 82,000 employees to their ranks. Medium (50-499) companies contributed 61,000 new positions, while large (500+) companies increased payroll size by just 37,000.
The services sector accounted for 150,000 of the new jobs (down from 194,000 in April), whiles goods-producing companies created 29,000 spots (up from 21,000 in April).
Manufacturing employment increased by 10,000 as construction added 14,000 and professional/business services added 46,000.
According to a statement from Moody's Analytics Chief Economist Mark Zandi, the time for a complete labor market makeover is not yet upon us:
Job growth moderated in May. The slowing in growth was concentrated in Professional/Business Services and companies with 50-999 employees. The job market has yet to break out from the pace of growth that has prevailed over the last three years.