Companies in the US added almost the same number of workers to payrolls in May as in the preceding month, an Automatic Data Processing Inc. report showed on Thursday, signaling that employment is settling into a slower pace.
Key Points of the Report
- ADP payrolls climbed by 173,000, following a revised 166,000 gain in April, according to the ADP Research Institute in Roseland, New Jersey
- Goods-producing industries, which included manufacturers and builders, cut headcounts by 1,000
- Payrolls at service providers increased by 175,000
“Job growth has moderated this spring as energy companies and manufacturers shed jobs,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. “Retailers are also more circumspect in their hiring. Despite the recent slowdown, job growth remains strong enough to reduce underemployment.”
Hiring in construction rose by 13,000, while factories cut 3,000 workers. Companies that are employing at least 500 or more workers increased hiring by 34,000 jobs — medium-sized businesses, or those with 50 to 499 employees, added 63,000 jobs, while small companies reportedly grew payrolls by 76,000 in May.