US private-sector employment rose by 173,000 jobs in May from April, with job creation apparently slowing as the year progresses, according to the ADP national employment report. The number of goods-producing jobs fell by 1,000, while service-providing jobs rose by 175,000.

May’s gain was an increase from the prior month’s gain, which was revised upward to 166,000 from 156,000.

May’s increase matched the median forecast in a Bloomberg survey of economists, which included estimates ranging from 105,000 to 205,000.

“Job growth has moderated this spring as energy companies and manufacturers shed jobs,” said Mark Zandi, chief economist of Moody’s Analytics. “Retailers are also more circumspect in their hiring. Despite the recent slowdown, job growth remains strong enough to reduce underemployment.”

Large businesses added 34,000 jobs, up from the 25,000 added in April. Midsize businesses added 63,000 jobs in May, also up from last month’s gain of 39,000.

Small businesses added 76,000 jobs in May, down from an upwardly revised 101,000 in April.

“Job creation appears to have slowed as we move further into 2016,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Challenging global conditions affecting hiring at large companies and a tightening labor market for skilled workers are among the factors that may be contributing to the slowdown.”

The ADP National Employment report is produced by ADP (NASD: ADP) in collaboration with Moody’s Analytics.