Private sector job growth slowed in May, declining to the lowest level seen in two years, ADP said Wednesday (June 4).
The private sector added 37,000 jobs during the month, a figure that was down from the revised total of 60,000 jobs added in April and the lowest level of gains since March 2023, the human resources (HR) and payroll solution provider said in a Wednesday press release.
“After a strong start to the year, hiring is losing momentum,” ADP Chief Economist Nela Richardson said in the release. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”
Year-over-year pay growth for job-stayers was little changed at 4.5% and for job-changers was unchanged at 7%, according to the release.
The Bureau of Labor Statistics (BLS) reported Tuesday (June 3) that job openings and labor turnover were little changed in April, with 7.4 million job openings, 5.6 million hires and 5.3 million separations.
“The number of hires in all industries was little changed in all industries in April,” the BLS said in a Tuesday press release.
The Conference Board reported May 27 that consumer expectations around business conditions, employment prospects and future income rose in May.
The organization said a rebound in consumer confidence that was already visible was accelerated by the May 12 announcement of a pause on some tariffs on imports from China.
Among the 10 industry sectors tracked by ADP, five saw job gains and five saw losses in May, according to the company’s Wednesday press release.
The sectors that grew during the month included leisure/hospitality (38,000), financial activities (20,000), information (8,000), construction (6,000) and other services (4,000).
The five sectors that shrank in May included professional/business services, which lost 17,000 jobs; education/health services, which lost 13,000; natural resources/mining, which lost 5,000; trade/transportation/utilities, which lost 4,000; and manufacturing, which lost 3,000.
In terms of establishment size, only medium-sized establishments with between 50 and 499 employees added jobs during May. These organizations added a collective 49,000 jobs.
Small businesses with between one and 49 employees cut 13,000 jobs, while large establishments with 500 or more employees cut 3,000.
