Hiring Service Sector Managers
The majority of job creations came from the services sector, contributing a substantial part of the total new jobs:
- Commerce, transport and public services: +55,000 jobs
- Education and health services: +46,000 jobs
- Construction: +32,000 jobs
In contrast, the goods-producing sector created only 3,000 new jobs.
Notable job losses in key sectors
Several sectors experienced job losses in May, highlighting weaknesses in specific areas of the economy:
- Manufacturing: -20,000 jobs
- Natural resources and mines: -9,000 jobs
- Information: -7,000 jobs
- Professional and business services: -6,000 jobs
Additionally, small businesses with 20 to 49 employees saw a drop of 36,000 jobs.
Slower wage growth
Annual wage growth remained stable at a rate of 5% for the third consecutive month, reflecting a deceleration in wage gains alongside job creation. ADP Chief Economist Nela Richardson highlighted the overall strength of the labor market, but pointed to notable pockets of weakness affecting both producers and consumers.
Implications for the next BLS report
The ADP report comes ahead of the Bureau of Labor Statistics’ (BLS) nonfarm payroll tally, eagerly awaited by Wall Street economists. The BLS is expected to report growth of 190,000 nonfarm jobs in May, up from 175,000 in April. However, recent indicators, including a drop in job postings to just over 8 million in April – the lowest since February 2021 – suggest a broader slowdown in hiring.
