May Private Sector Employment Increases 178 Thousand, Missing Estimate

(Updated - May 30, 2018 8:17 AM EDT)

• ADP Employment Change (May) 178K vs 190K Expected

Private sector employment increased by 178,000 jobs from April to May according to the May ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® 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.

May 2018 Report Highlights*View the ADP National Employment Report Infographic at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 178,000

By Company Size

• Small businesses: 38,000
  • 1-19 employees 15,000
  • 20-49 employees 23,000
• Medium businesses: 84,000
  • 50-499 employees 84,000
• Large businesses: 56,000
  • 500-999 employees 23,000
  • 1,000+ employees 34,000

By Sector

• Goods-producing: 64,000
  • Natural resources/mining 11,000
  • Construction 39,000
  • Manufacturing 14,000
• Service-providing: 114,000
  • Trade/transportation/utilities -23,000
  • Information 2,000
  • Financial activities 2,000
  • Professional/business services 61,000
    • Professional/technical services 20,000
    • Management of companies/enterprises 5,000
    • Administrative/support services 35,000
  • Education/health services 35,000
    • Health care/social assistance 26,000
    • Education 9,000
  • Leisure/hospitality 33,000
  • Other services 5,000

* Sum of components may not equal total, due to rounding.

• Franchise Employment**
  • Franchise jobs 29,500

**Complete details on franchise employment can be found here.

"The hot job market has cooled slightly as the labor market continues to tighten," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well."

Mark Zandi, chief economist of Moody's Analytics, said, "Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions. Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem."

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The April total of jobs added was revised down from 204,000 to 163,000.

To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.adpemploymentreport.com.

The June 2018 ADP National Employment Report will be released at 8:15 a.m. ET on July 5, 2018.

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