US Private Sector Adds 978,000 Jobs In May, Highest Increase In 11 Months

According to news, US private sector adds 978,000 jobs in May, the highest increase in 11 months and a sign of proceeded labor market recovery amid the COVID-19 pandemic.

Service-providing sectors added 850,000 jobs in May, said a report released Thursday by payroll data company Automatic Data Processing (ADP) in collaboration with Moody’s Analytics.

The leisure and hospitality sectors added 440,000 jobs, the education and healthcare sectors added 139,000, while the trade, transportation, and utility sectors added 118,000, Xinhua news agency quoted the report as saying.

However, The Information Sector Lost 3,000 Jobs in The Month.

“Private payrolls have increased significantly in recent months and have posted the most powerful increases since the early days of the recovery,” said ADP chief economist Nella Richardson.

Private Companies Added 654,000 Jobs in April, Revised Upwards.

“While goods producers increased at a steady pace, it is service providers that estimated for the lion’s share of profits, far over the monthly average over the past six months,” Richardson said.

Large firms and medium-sized businesses hired 308,000 and 338,000 employees, respectively, and smaller companies added 333,000 employees, the ADP report showed, indicating a balanced recovery across different company sizes.

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Private companies in the US cut nearly 20 million jobs in March and April last year due to the Covid shutdown.

Amid the reopening efforts, the private sector saw a revised increase of over 3 million in May, followed by a revised increase of over 4 million in June.

After That, However, Job Growth Has Slowed.

In December 2020, the trend modified further, with private companies shedding a revised 75,000 jobs between Covid spikes.

The ADP report came a day before the crucial monthly employment report released by the Department of Labor Statistics, which will include employment data from both the private sector and the government.