United States companies added 135,000 private-sector jobs in May, according to the ADP National Employment Report. This represents a substantial increase over April’s job growth of 113,000 and a much better May employment performance compared to last year, when only 99,000 jobs were added.
ADP publishes its monthly report on total U.S. non-farm private employment in collaboration with Moody’s Analytics, based on a measuring of 24 million U.S. workers and over 400,000 employers.
The biggest job growth took place in the services sector, which added 138,000 jobs. The services sector growth made up for the net loss of 3,000 goods-producing jobs for a net total jobs increase of 135,000. Jobs in the services sector have been doing very well in recent months, with an average growth of 154,000 jobs in the first quarter of 2013.
The ADP National Employment Report showed particularly impressive employment gains in the business and professional services sector. It added more than twice as many jobs as the month before, with 42,000 new jobs. Other growth areas in the services sector were trade, transportation and utilities, which together added 31,000 jobs, and the financial sector, which added 7,000 jobs.
The goods-producing sector includes both construction and manufacturing. Despite the overall poor job figures for the goods-producing sector, construction jobs proved to be a bright spot, adding 5,000 jobs in May. In an ADP press release, Mark Zandi, chief economist of Moody’s Analytics, blames the lack of manufacturing job growth to the “fiscal drag from tax increases and government spending cuts.”
While the private sector job growth for May was not as strong as some forecasters had predicted it would be, it was still a very positive month for job growth, bringing the total number of new private sector jobs this year to 777,000. According to the measuring of Moody’s Analytics, over 100,000 new private sector jobs have been added to the U.S. economy every month this year.
The new job growth data shows that college graduates currently have the best employment options available in the services sector, and especially in smaller service businesses. There was steady growth in all business sizes during May, but the largest growth came from businesses with less than 50 employees, which added 58,000 jobs in the month.
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