Service Businesses Adding Jobs, Report Says

The ADP National Employment Report shows a net increase in private sector jobs of 55,000, with services businesses leading the hiring wave. Midsized businesses showed more hiring than small business or large business, according to the report.

After months of a jobless recovery, the job market appears to finally be heating up.

Private sector employment increased by 55,000 jobs from April to May on a seasonably adjusted basis, according to the ADP National Employment Report, created by HR and payroll outsourcing firm Automatic Data Processing in partnership with Macroeconomic Advisors.

Goods producing businesses still lost jobs during the month, with the sector shedding a total of 23,000 positions.  However, construction employment dropped 41,000 while manufacturing employment climbed 15,000.

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But the services sector continued to gain momentum, adding 78,000 jobs, according to the report.

Most job gains came in midsized businesses – those with 50 to 499 workers – with those companies adding a total of 39,000 jobs. Large businesses – those with 5000 or more workers – added 3,000 jobs. Small businesses – those with fewer than 50 workers – increased jobs by 13,000 in May, according to the report.