The National Employment Report indicates that private sector employment increased by only 27,000 jobs from April to May, according to the ADP Research Institute and Moody’s Analytics.
Ahu Yildirmaz, vice president and co-head of the ADP Research Institute said May's lackluster reading was miniscule.
“Following an overly strong April, May marked the smallest gain since the expansion began,” Yildirmaz said. “Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”
That being said, the report also reveals that the number of jobs added in April was revised down from 275,000 to 271,000.
The chart below demonstrates the rate of increase since 2013:
(Click to enlarge; image courtesy of ADP)
Additionally, the report indicates that construction jobs fell from April, and the goods-producing sector is now predicted to decrease by a whopping 43,000 jobs.
Below is a breakdown of job segments that saw changes in employment between April and May:
Natural resources and mining: Decrease 4,000
Construction: Decrease 36,000
Manufacturing: Decrease 3,000
The service-providing sector increased by 71,000 jobs, including:
Information: Decrease 3,000
Financial activities: Increase 13,000
Professional and business services: Increase 22,000
Education and health services: Increase 33,000
Leisure and hospitality: Increase 16,000
Other services: Decrease 9,000
“Job growth is moderating,” Moody’s Analytics Chief Economist Mark Zandi said. “Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
NOTE: This report is a monthly measure of the change in total U.S. non-farm private employment derived from actual, anonymous payroll data of client companies served by the company. The data is collected and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics.