US private-sector employment increases by 135,000 jobs in May from April on seasonally adjusted basis; April's job gains revised to 113,000 from 119,000: ADP

Cindy Allen

ROSELAND, New Jersey , June 5, 2013 (press release) – Private sector employment increased by 135,000 jobs from April to May, according to the May ADP National Employment Report®, which is produced by ADP®, a leading provider of human capital management 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. April’s job gains were revised downward to 113,000 from 119,000.   May 2013 Report Highlights *

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

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

The goods-producing sector shed a total of 3,000 jobs in May. Although construction payrolls rose by 5,000 in May, on top of an increase of 8,000 jobs in April, the manufacturing industry recorded a total loss of 6,000 jobs in May.

Service-providing industries added 138,000 jobs in May, an improvement over the April gain of 113,000.  However, the gains in May are below the average monthly gain of 156,000 during the first quarter.  Among the service industries reported by the ADP National Employment Report, professional/business services added 42,000 jobs added over the month, more than twice as many as in April. Trade/transportation/utilities recorded a gain of 31,000 jobs, while financial activities added 7,000 jobs.   

"U.S. private sector employment increased by 135,000 jobs during the month of May 2013, a slight increase over the previous month of April," said Carlos A. Rodriguez, president and chief executive officer of ADP.  "The majority of new jobs in May came from the service-providing sector, which added a total of 138,000 jobs, 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 decline of 6,000 lost jobs in the manufacturing industry."

Mark Zandi, chief economist of Moody's Analytics, said, "The job market continues to expand, but growth has slowed since the beginning of the year. 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."

Chart 1: Change in Total Nonfarm Private Employment

Chart 2: Historical Trend - Change in Total Nonfarm Private Employment

Chart 3: Change in Nonfarm Private Employment by Selected Industry

Chart 4: Change in Nonfarm Private Employment by Company Size

Businesses with 49 or fewer employees added 58,000 jobs in May. Employment levels among medium-sized companies with 50-499 employees rose by 39,000, while employment at large companies – those with 500 or more employees – also increased by 39,000.

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 416,000 U.S. clients employing nearly 24 million workers in the U.S.

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 2013 Small Business Report Highlights*

* 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 2013 ADP National Employment Report will be released at 8:15 a.m. ET on July 3, 2013.

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.

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 both reports is collected for pay periods that can be interpolated to include the week of the 12^th 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 proprietary analyses from 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 $2.7 billion in 2012, employs approximately 6,800 people worldwide and has a presence in 28 countries. Further information is available at www.moodysanalytics.com.

About ADP
With more than $10 billion in revenues and more than 60 years of experience, ADP^® (NASDAQ: ADP) serves approximately 600,000 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 or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.

The ADP logo, ADP, ADP National Employment Report, and ADP Small Business Report are registered trademarks of ADP, Inc.  ADP Research Institute is a service mark of ADP, Inc. Copyright © 2013, ADP, Inc.

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