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Private Sector Employment Increased by 201,000 Jobs in May

ADP News Release (06/03/15)

Companies added new employees at a modest pace in May, according to a survey by Automatic Data Processing Inc. and Moody’s Analytics. Private payrolls rose by 201,000 jobs. Meanwhile, the April ADP increase was revised down to 165,000 from 169,000.

ADP says small businesses are driving job growth. Companies employing between one and 49 employees hired 122,000 new workers in May. Medium-size businesses with payrolls of 50 to 499 employees added 65,000 workers. Big firms with 500 or more employees added 13,000 workers. The service sector hired 192,000 new employees, the construction sector hired 27,000 workers, and manufacturers cut 5,000 jobs.

“The job market posted a solid gain in May,” says Mark Zandi, chief economist of Moody’s Analytics. “Employment growth remains near the average of the past couple of years. At the current pace of job growth the economy will be back to full employment by this time next year. The only blemishes are the decline in mining jobs due to the collapse in oil prices and the decline in manufacturing due to the strong dollar.”