Private sector employers added 278,000 jobs in May, following the addition of 296,000 jobs in April, according to the latest ADP National Employment Report.
Much of the growth over the month was in leisure/hospitality (+208,000), but natural resources/mining (+94,000), construction (+64,000), and trade/transportation/utilities (+32,000) also had notable job gains. Manufacturing employment continued to decline in May with the loss of 48,000 jobs. Financial activities (-35,000), education/health services (-29,000), and information (-15,000) also lost jobs over the month.
Small businesses (1-49 employees) had the most job growth in May, adding 235,000 jobs. Meanwhile, larger establishments (500+ employees) were down 106,000 jobs.
Annual pay growth continued to slow last month, dropping to 6.5% for job stayers (down from 6.7%) and 12.1% for job changers (down from 13.2%). “This is the second month we’ve seen a full percentage point decline in pay growth for job changers,” said Nela Richardson, ADP’s chief economist. “Pay growth is slowing substantially, and wage-driven inflation may be less of a concern for the economy despite robust hiring.”
The highest pay increases were in leisure/hospitality (8.4%) and education/health services (7.0%), while information (5.8%) and manufacturing (5.9%) had the smallest increases. By establishment size, pay increases ranged from 5.4% (1-19 employees) to 6.8% (50-249 employees).
