People browse booths at a military veterans’ job fair in Carson, California October 3, 2014. (Photo: Reuters)
The ADP National Employment Report showed the U.S. private sector added 253,000 jobs in May, far more than the 170,000 median consensus estimate.
“May proved to be a very strong month for job growth,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries.”
Construction added a whopping 37,000 jobs in May after dipping in April by 2,000 and very strong gains in the previous two months. The goods-producing sector overall added 48,000, includes 3,000 in Natural Resources & Mining and another 8,000 in Manufacturing.
“Job growth is rip-roaring,” Mark Zandi, chief economist of Moody’s Analytics said. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number one challenge will be a shortage of labor.”
Small business that employ between 1 and 49 employees added a solid percentage of 83,000 jobs, while mid-size (50-499) added 113,000. Large businesses with 500 employees ore more added 57,000, boding well for wages.
