US private sector employment rises less than expected in May - ADP

(Sharecast News) - Private sector employment in the US rose less than expected in May, according to figures released on Wednesday by ADP. Employment increased by 37,000 from April, versus expectations for a 110,000 jump. Meanwhile, April's gain was revised from 62,000 to 60,000.

Small businesses with fewer than 50 employees shed 13,000 jobs, while medium businesses with between 50 and 499 employees added 49,000 jobs.

Large businesses with more than 500 employees shed 3,000 jobs.

The service sector added 36,000 jobs, while the goods-producing sector saw a 2,000 decline.

The data also showed that year-over-year pay growth for job-stayers was little changed in May, at 4.5%, while pay for job-changers rose 7%, unchanged from April's revised figure.

Nela Richardson, chief economist at ADP, said: "After a strong start to the year, hiring is losing momentum.

"Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers."