PhotoJob creation picked up some momentum in May following a so-so report the month before.

According to the ADP National Employment Report, produced by the ADP Research Institute in collaboration with Moody's Analytics, last month saw employment increase by 253,000 jobs.

In contrast, there were just 174,000 new jobs in April -- a downward revision from the 177,000 initially reported.

"Job growth is rip-roaring,” said Moody's Analytics Chief Economist Mark Zandi. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses' number one challenge will be a shortage of labor."

Size and sector performance

Medium businesses, those employing 50 and 499 workers, were responsible for most of the new jobs (+113,000), following by small businesses (+83,000) and large businesses (+57,000)

As is generally the case, the services sector provided the bulk of the new jobs -- 205,000. Leading industries were professional/business services (+88,000), trade/transportation/utilities (+58,000) and education/health services (+54,000).

Leisure/hospitality, meanwhile lost 11,000 jobs and information saw employment shrink by 8,000 positions.

The goods-producing sector cranked out 48,000 jobs, thanks largely to Construction (+37,000) and manufacturing (+8,000).

"May proved to be a very strong month for job growth," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries."

 

 

 


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