ADP Showed Private Sector Employment Increased by 135 K in May
Automatic Data Processing reported that private sector employers added 135 K in May up from a revised figure of 133 K in April. Regarding sectors goods-producing cut jobs (-3K ) for the first time since April 2012 while service-providing sector added 138 K jobs (41st straight month increase). In the details, note that manufacturing cut 6 K jobs which confirms the weakness of US factories whereas construction firms hired 5 K people showing that the recovery is still on track in the real estate market. Concerning firms size, small companies the most with 58 K strengthening the results of Intuit survey.
More from ADP:
“Private sector employment increased by 135,000 jobs from April to May, according to the May ADP National Employment Report®, which is produced by ADP®, a leading provider of human capital management solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis. April’s job gains were revised downward to 113,000 from 119,000.
The goods-producing sector shed a total of 3,000 jobs in May. Although c onstruction payrolls rose by 5,000 in May, on top of an increase of 8,000 jobs in April , the manufacturing industry recorded a total loss of 6,000 jobs in May. Service-providing industries added 138,000 jobs in May, an improvement over the April gain of 113,000. However, the gains in May are below the average monthly gain of 156,000 during the first quarter. Among the service industries reported by the ADP National Employment Report, professional/business services added 42,000 jobs added over the month, more than twice as many as in April. Trade/transportation/utilities recorded a gain of 31,000 jobs, while financial activities added 7,000 jobs.
This was below the Bloomberg consensus of 169 K. ADP was not very useful to predict nonfarm payrolls figures, yet, it suggest that employment situation in May was slightly better than in April.