ADP National Employment Report: Private Sector Employment Increased by 179,000 Jobs in May

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ADP National Employment Report: Private Sector Employment Increased by 179,000 Jobs in May
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Chart 1. Change in Total Nonfarm Private Employment Click here for high-resolution version

ROSELAND, NJ--(Marketwired - Jun 4, 2014) - Private sector employment increased by 179,000 jobs from April to May according to the May ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

May 2014 Report Highlights*

View the ADP National Employment Report Infographic at www.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 179,000 

  • By Company Size 
    • Small businesses: 82,000
      • 1-19 employees 48,000 
      • 20-49 employees 34,000 

    • Medium businesses: 61,000  
      • 50-499 employees 61,000 

    • Large businesses: 37,000 
      • 500-999 employees - 3,000 
      • 1,000+ employees 40,000 

  • By Sector 
    • Goods-producing 29,000 
    • Service-providing 150,000 

  • Industry Snapshot
    • Construction 14,000 
    • Manufacturing 10,000 
    • Trade/transportation/utilities 35,000
    • Financial activities 6,000 
    • Professional/business services 46,000

* Sum of components may not equal total, due to rounding.

Goods-producing employment rose by 29,000 jobs in May, up from 21,000 jobs gained in April. The construction industry added 14,000 jobs over the month, down slightly from 16,000 in April. Meanwhile, manufacturing added 10,000 jobs in May, up from April's 2,000 and the largest number since December last year.

Service-providing employment rose by 150,000 jobs in May, down from 194,000 in April. The ADP National Employment Report indicates that professional/business services contributed the most to the lower overall number in May -- adding 46,000 jobs, down from 75,000 in April. Expansion in trade/transportation/utilities grew by 35,000, the same number of jobs added in April. The 6,000 new jobs added in financial activities was down slightly from 8,000 last month.

"After a strong post-winter rebound in April, job growth in May slowed somewhat," said Carlos Rodriguez, president and chief executive officer of ADP. "The 179,000 jobs added figure is higher than May of last year and in line with the average over the past twelve months."

Mark Zandi, chief economist of Moody's Analytics, said, "Job growth moderated in May. The slowing in growth was concentrated in Professional/Business Services and companies with 50-999 employees. The job market has yet to break out from the pace of growth that has prevailed over the last three years."

To see Chart 1. Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201406/MOD-254132_Chart1.ChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 2. Historical Trend -- Change in Total Nonfarm Private Employment, please click here: http://media.marketwire.com/attachments/201406/MOD-254133_Chart2.HistoricalTrendChangeinTotalNonfarmPrivateEmployment.jpg

To see Chart 3. Change in Nonfarm Private Employment by Selected Industry, please click here: http://media.marketwire.com/attachments/201406/MOD-254135_Chart3.ChangeinNonfarmPrivateEmploymentbySelectedIndustry.jpg

To see Chart 4. Change in Nonfarm Private Employment by Company Size, please click here: http://media.marketwire.com/attachments/201406/MOD-254136_Chart4.ChangeinNonfarmPrivateEmploymentbyCompanySize.jpg

Payroll growth for businesses with 49 or fewer employees increased in May adding 82,000 jobs, up from a downwardly revised 76,000 in April and almost reaching the twelve-month average of 84,000. Job growth slowed over the month for medium-sized and large firms. Employment among medium-sized companies with 50-499 employees rose by 61,000, down from 82,000 in April. Employment at large companies -- those with 500 or more employees -- increased by 37,000, down from 56,000 the previous month. Companies with 500-999 employees shed 3,000 jobs after adding 23,000 in April.

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The April total of jobs added was revised to 215,000.

ADP Small Business Report®:
Due to the important contribution that small businesses make to economic growth, employment data that are specific to businesses with 49 or fewer employees is reported each month in the ADP Small Business Report®, a subset of the ADP National Employment Report.

May 2014 Small Business Report Highlights*

Total Small Business Employment: 82,000 

  • By size:
    • 1-19 employees 48,000 
    • 20-49 employees 34,000 

  • By sector for 1-49 employees:
    • Goods producing 9,000 
    • Service providing 73,000 

  • By sector for 1-19 employees:
    • Goods producing 5,000 
    • Service providing 43,000 

  • By sector for 20-49 employees:
    • Goods producing 3,000 
    • Service providing 31,000 

* Sum of components may not equal total, due to rounding.

Additional information about small business employment, including charts on monthly job growth and employment levels along with historical data, is available at www.adpemploymentreport.com.

To obtain additional information about the ADP National Employment Report, including additional charts, supporting data and the schedule of future release dates, or to subscribe to the monthly email alerts and RSS feeds, please visit www.adpemploymentreport.com.

The June 2014 ADP National Employment Report will be released at 8:15 a.m. ET on July 2, 2014.

About the ADP National Employment Report®
The ADP National Employment Report® is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP®, a leading provider of human capital management solutions. The report, which measures nearly 24 million U.S. workers, is produced by the ADP Research Institute®, a specialized group within the company that provides insights around employment trends and workforce strategy, in collaboration with Moody's Analytics, Inc.

Each month, ADP issues the ADP National Employment Report as part of the company's commitment to adding deeper insights into the U.S. labor market and providing businesses, governments and others with a source of credible and valuable information. The ADP National Employment Report is broadly distributed to the public each month, free of charge.

The ADP Small Business Report is a monthly estimate of private nonfarm employment among companies in the U.S. with 1-49 employees and is a subset of the ADP National Employment Report. The data for this report is collected for pay periods that can be interpolated to include the week of the 12th of each month, and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics to compute employment from its monthly survey of establishments. Due to this processing, this subset is modified to make it indicative of national employment levels; therefore, the resulting employment changes computed for the ADP National Employment Report are not representative of changes in ADP's total base of U.S. business clients.

For a description of the underlying data and the statistical model used to create this report, please see "ADP National Employment Report: Development Methodology" at www.adpemploymentreport.com/docs/ADP-NER-Methodology-Full-Detail.pdf.

About Moody's Analytics
Moody's Analytics helps capital markets and risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services and research, including the proprietary analysis of Moody's Investors Service, Moody's Analytics integrates and customizes its offerings to address specific business challenges. Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue of $3.0 billion in 2013, employs approximately 8,400 people worldwide, and has a presence in 31 countries. More information is available at www.moodysanalytics.com.

About ADP
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and Human Capital Management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP, visit the company's Web site at www.adp.com.

The ADP logo, ADP, the ADP National Employment Report, the ADP Small Business Report and the ADP Research Institute are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2014 ADP, Inc.

Contact:
Media

Dick Wolfe
ADP
(973) 974-7034
dick.wolfe@adp.com

Kate Rambo
Weber Shandwick for ADP
(617) 520-7048
krambo@webershandwick.com
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