US private sector adds fewer jobs than expected in May - ADP

5th Jun 2024 13:45

(Sharecast News) - Private sector employment in the US rose less than expected in May, according to figures released on Wednesday by ADP.

Employment increased by 152,000 from April, versus expectations for a 173,000 jump. April's gain was revised from 192,000 to 188,000.

Small businesses with fewer than 50 employees shed 10,000 jobs, while medium businesses with between 50 and 499 employees added 79,000 jobs. Large businesses with more than 500 employees created an additional 98,000 jobs.

The service sector added 149,000 jobs, while the goods-producing sector saw a 3,000 increase.

The data also showed that pay for job-stayers was steady at 5% for the third month, while pay for job-changers grew 7.8%.

Nela Richardson, chief economist at ADP, said: "Job gains and pay growth are slowing going into the second half of the year.

"The labour market is solid, but we're monitoring notable pockets of weakness tied to both producers and consumers."