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US – ADP finds job market growth slows

June 05 2013

U.S. private-sector employment rose by 135,000 in May, seasonally adjusted, according to the national employment report released today by Automatic Data Processing Inc. (NASD: ADP). April’s employment growth was revised downward to 113,000 from the initially reported 119,000.

“The job market continues to expand, but growth has slowed since the beginning of the year,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report for ADP. “The slowdown is evident across all industries and all but the largest companies. Manufacturers are reducing payrolls. The softer job market this spring is largely due to significant fiscal drag from tax increases and government spending cuts.”

The service-providing sector added a total of 138,000 jobs in May, while the goods-producing sector recorded a loss of 3,000 jobs. Notably, a gain of 5,000 jobs in the construction industry during May was offset by a loss of 6,000 jobs in the manufacturing industry.

Small businesses, those with fewer than 50 workers, added 58,000 jobs in May. Large business, those with 500 or more workers, gained 39,000 jobs. Midsize businesses also added 39,000 jobs.

The report is derived from a sample of ADP data from approximately 406,000 U.S. business clients representing 23 million U.S. employees. Methodology utilizes ADP payroll data, U.S. BLS employment data, and the Philadelphia Federal Reserve Bank’s Aruoba-Diebold-Scotti Business Conditions Index.

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