ADP: Companies Added 201,000 May Jobs
Solid Gains In May
U.S. businesses produced 201,000 new jobs in May, meeting forecasts, according to payroll processing firm ADP. Last month’s jump, according to ADP, was largely the result of major gains in the service sector, which accounted for 95% of the new jobs.
“The labor market moved back up to the 200,000 jobs added mark in May, a number which has been something of a bellwether for healthy employment growth,” Carlos Rodriguez, president and CEO of ADP, said in a statement. “We hope that the May number is the beginning of an upward trend going into the summer months.”
ADP data showed small businesses added 122,000 jobs in May, while mid-sized firms and large companies increased payrolls by 65,000 and 13,000 positions respectively. Within sectors, trade, transportation and utilities led gainers, generating 56,000 jobs. Professional and business services firms took on 28,000 employees, while construction companies added 27,000 positions. The manufacturing sector, though, cut 5,000 jobs.
“The job market posted a solid gain in May,” said Mark Zandi, chief economist at Moody’s analytics, which partners with ADP to prepare the report. “Employment growth remains near the average of the past couple of years. At the current pace of job growth, the economy will be back to full employment by this time next year.”
The official U.S. jobs report will be released by the Bureau of Labor Statistics tomorrow morning, with new public and private sector jobs in May expected to total nearly 230,000 positions.