U.S. private sector adds 37,000 jobs in May, pay up 4.5%

Published 04/06/2025, 13:20
U.S. private sector adds 37,000 jobs in May, pay up 4.5%

ROSELAND, N.J. - The U.S. private sector saw an increase of 37,000 jobs in May, while annual pay rose by 4.5% compared to the same month last year, according to the ADP National Employment Report released today. The report comes from InvestingPro’s analysis of ADP, a prominent player in the Professional Services industry with a market capitalization of $132.55 billion and impressive revenue growth of 6.82% over the last twelve months. The report, produced by ADP Research in partnership with the Stanford Digital Economy Lab, is based on actual payroll data from over 25 million U.S. employees.

May’s job growth marked the slowest pace since March 2023, with the goods-producing sector shedding 2,000 positions. Notably, natural resources and mining lost 5,000 jobs, manufacturing decreased by 3,000, while construction added 6,000 jobs. The service-providing sector added 36,000 jobs, led by a significant rise in leisure and hospitality, which saw an increase of 38,000 positions. However, trade/transportation/utilities, professional/business services, and education/health services experienced declines.

Regionally, the Midwest added 20,000 jobs, with the West seeing an increase of 37,000 positions. In contrast, the Northeast and South reported job losses of 19,000 and 5,000, respectively.

In terms of establishment size, medium-sized businesses (50-499 employees) led the growth with an addition of 49,000 jobs. Small establishments (1-49 employees) lost 13,000 jobs, and large businesses (500 or more employees) saw a decrease of 3,000 jobs.

Pay growth remained relatively stable for job-stayers at 4.5% and for job-changers at 7%, maintaining the robust levels seen earlier in the year. Pay increases varied across industry sectors and firm sizes, with financial activities seeing a 5.2% rise for job-stayers, while small firms with 1-19 employees experienced the lowest pay growth at 2.6%.

The April jobs figures were slightly revised down from 62,000 to 60,000 added positions. The next ADP National Employment Report is scheduled for release on July 2, 2025.

The ADP National Employment Report is a monthly publication providing a snapshot of U.S. private employment based on actual payroll data. It serves as a source of information for businesses, governments, and policymakers. This report is part of ADP’s commitment to offering deeper labor market insights. According to InvestingPro, ADP maintains strong financial health with a "GOOD" overall score, reflecting its stable market position. The company’s stock is currently trading near its 52-week high of $327.99, though InvestingPro analysis suggests it may be trading above its Fair Value. For deeper insights into ADP’s financial performance and future outlook, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 14 additional ProTips and extensive financial metrics.

The information in this article is based on a press release statement.

In other recent news, Automatic Data Processing Inc (ADP) reported strong financial results for its fiscal third quarter of 2025. The company exceeded analyst expectations with earnings per share (EPS) of $3.06 compared to the forecasted $2.97 and achieved revenue of $5.55 billion, surpassing the anticipated $5.49 billion. ADP also announced a public offering of senior notes valued at $1 billion with a 4.75% interest rate, maturing in 2032, to refinance existing debt and for general corporate purposes. This move is part of ADP’s strategy to manage its capital structure effectively.

The company revised its full-year guidance upward, expecting consolidated revenue growth at the high end of the 6-7% range and adjusted EPS growth of 8-9%. ADP’s Employer Services segment saw a 5% increase in revenue, while PEO revenue grew by 7%. Additionally, ADP has been integrating its Workforce Software with its Human Capital Management platforms, driving innovation and client acquisition. The acquisition of PEI in Mexico further bolstered ADP’s global payroll capabilities.

Analyst firms such as Barclays and JPMorgan have noted ADP’s strong performance and strategic initiatives. ADP’s CFO transition was also announced, with Peter Hadley set to succeed Don McGuire as CFO effective July 1. These recent developments highlight ADP’s strong operational efficiency and strategic focus on innovation and market expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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