ADP: U.S. payrolls add 40,000 jobs in May

ROSELAND, N.J. – Employment at U.S. companies grew in May for the third consecutive month, according to preliminary data released today by ADP Employer Services.
Nonfarm private payrolls grew to 116.11 million last month, adding a seasonally adjusted 40,000 jobs compared with the month before, after adding a revised 13,000 jobs in April.
Analysts had expected a May decline of 30,000 jobs, based on the median forecast from a Bloomberg News survey of 25 economists. (Their estimates ranged from a 95,000-job decline to a 25,000-job gain.)
“The May payroll report from the government will be weaker, though it’s probably unlikely we’ll see a really horrible number,” David Sloan, senior economist at 4Cast Inc. in New York, told Bloomberg News.
Employment in service-providing industries grew by 77,000 jobs compared with April, ADP said. The financial-activities sector continued to rebound, adding 5,000 jobs in its third consecutive monthly gain.
Goods-producing employment fell by 37,000 jobs, in the sector’s 18th consecutive monthly decline. Within goods-producing industries, manufacturing employment fell for the 21st month in a row, losing 40,000 jobs, while construction employment fell for the 18th straight month, losing 13,000 jobs – the smallest decline since January.
Construction has now lost 298,000 jobs since its peak in August 2006, ADP noted.
The gains were concentrated in the smallest businesses. Companies with 49 or fewer workers added 61,000 jobs last month. Mid-sized businesses with 50 to 499 workers lost 3,000 jobs, while private companies with 500 or more workers saw employment fall by 18,000.
The monthly report – prepared by Macroeconomic Advisers LLC, based on ADP payroll data from about 383,000 employers with nearly 23 million workers nationwide – does not include hiring by government agencies.
ADP Employment Services – a division of Automatic Data Processing Inc.(NYSE: ADP) – handles payroll for 1 in 6 private-sector employees nationwide. For more information, including the ADP National Employment Report, visit www.adp.com.