Private sector employment increased by 37,000 jobs in May and annual pay was up 4.5 percent year-over-year, according to the May ADP National Employment Report released June 4.
The pace of hiring in May reached its lowest level since March 2023
“After a strong start to the year, hiring is losing momentum,” Dr. Nela Richardson, chief economist, ADP said. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”
Looking at where the jobs were added, the leisure/hospitality sector added the most with 38,000 positions; conversely, the professional/business services sector had the most job losses at -17,000.
In terms of company size, medium establishments added the most jobs at 49,000; while small establishments saw the largest drop -13,000.
Pay gains were little changed in May. Year-over-year pay growth for job-stayers was little changed in May, at 4.5 percent. Pay for job-changers rose 7 percent, unchanged from April’s revised figure.
