On Wednesday, June 3, ADP came out with its National Employment Report for May 2015. The report showed a 201,000 gain in private sector jobs for the month of May. (Source: ADP, June 3, 2015.)
Employment at small businesses increased substantially. Companies with less than 49 employees gained a total of 122,000 jobs, accounting for 60% of all job growth.
Medium-sized businesses, characterized by having 50 to 499 employees, also gained a solid 65,000 jobs.
Large businesses increased their employment as well, adding 13,000 jobs in May. However, within the category, companies with 500 to 999 employees lost 3,000 jobs, while those with 1,000 or more employees added 16,000 jobs.
Classifying all jobs as either goods-producing or service-providing, the majority of employment gains are in services. Goods-producing only added 9,000 jobs, still better than the dismal 1,000 in April. Service-producing industries gained a much more substantial 192,000 jobs, a significant rise from 164,000 in the previous month.
All Industries Rising Except for Manufacturing
Looking at industries, construction is having another good month, adding 27,000 jobs. In April, construction added 24,000 jobs. Manufacturing continues to struggle due to a strong U.S. dollar, losing 5,000 jobs in May. In April, manufacturing lost 8,000 jobs.
Professional/business services gained 28,000 jobs, showing slower growth than April’s 35,000. Trade/transportation/utilities added 56,000 jobs, after gaining 41,000 in April. Growth in financial activities was 12,000 in May, doubling last month’s 6,000.
The ADP National Employment Report was based on its payroll data, coming from 411,000 U.S. clients employing nearly 24 million workers in the U.S. It usually serves as an early look at employment growth before the official report by the Bureau of Labor Statistics. For May, the official report will be released this Friday, June 5.
The preliminary numbers look positive. The stock market responded with all major indices higher during midday’s trading.