ADP: Private-sector employment increased by 128,000 jobs in May

Chart 1. Change in Total Nonfarm Private Employment

May saw the nation’s employment level rise, as the private sector added 128,000 jobs, according to a Thursday release of the ADP National Employment Report.

Monthly job gains are closer to pre-pandemic levels under a backdrop of a tight labor market and elevated inflation.

“The job growth rate of hiring has tempered across all industries, while small businesses remain a source of concern as they struggle to keep up with larger firms that have been booming as of late,” Nela Richardson, chief economist for Roseland-based ADP, said.

In terms of company size, small businesses fared the worst, as they posted a loss of 91,000 positions. Medium-sized firms of 50-499 employees added 97,000 jobs, while large businesses gained 122,000 positions.

Looking at where these positions were added, the service-providing sector led the way with 104,000 positions filled; education and health services added 46,000 spots and professional and business services added 23,000.

In the goods-producing sector, manufacturing added 22,000 jobs, while construction decreased by 2,000.