Small Businesses Create Bulk of May’s New 201K Jobs

May ADP Jobs by co sizeSmall businesses, especially mom & pops, again were the employment  powerhouse, in May accounting for more than half the 201,000 new private sector jobs created in the month.

ADP and its partner, Moody’s Analytics, said businesses with fewer than 50 workers created 122,000 new jobs in May, while the biggest employers barely budged the needle, adding 13,000 workers. In fact, the monthly National Employment Report said employers with 500-999 workers cut 3,000 jobs during the month. Manufacturers of all sizes lost 5,000 jobs.

Considered an indicator of what the official government jobs report will show when it’s released on Friday, ADP’s May numbers were about what economists were expecting. The Dow Jones Newswires survey found the average forecast was for the report to show 215,000 new private sector jobs. Bloomberg and Reuters both forecast 200,000 jobs.

Economists expect the U.S. Department of Labor employment report will show businesses added somewhere between about 210,000 to 227,000 during the month. That would be consistent with the department’s initial April report, which put the new job count at 223,000 for the month.

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mom and pop May job growthMark Zandi, Moody’s chief economist, said of the May report, “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.”

Goods producers added a mere 9,000 jobs; the balance were created by the service sector:

  • Trade/transportation/utilities +56,000
  • Professional/business services +28,000
  • Construction +27,000
  • Financial activities +12,000

John Zappe is the editor of and a contributing editor of John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


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