ADP Report: Small Businesses Created 83,000 Jobs in May

June 1, 2017 Pete Jansons

Small businesses continued adding jobs at a very healthy pace in May, according to the ADP’s latest Small Business Employment Report .Small businesses added 83,000 jobs in May, up from 61,000 jobs in April, but still not quite as high as the 118,000 jobs added in March or the 104,000 jobs added in February. The ADP’s small business employment report looks at job growth specific to businesses with 49 or fewer employees.

A Closer Look at the Numbers

When looking at small businesses by size, very small businesses (those with 1-19 employees) added 38,000 jobs in May (up from 28,000 jobs in April), and other small businesses (20-49 employees) added 45,000 jobs (up from 33,000 jobs in April). Comparing industries, small businesses in the service-producing sector added 20,000 jobs in May (down from 69,000 jobs in April), and small businesses in the goods-producing sector added 63,000 jobs (after a loss of 8,000 jobs in April).

Comparison to Overall U.S. Job Growth

National job growth – across company size – exceeded economists’ expectations. While economists’ predicted the U.S. would add between 155,000 and 240,000 jobs, according to Reuters, the ADP reports that the U.S. actually added 253,000 jobs in May. This is significantly higher than the 175,000 private sector jobs added in April (originally reported as 177,000 jobs), and nearly on par with the 255,000 jobs the U.S. added in March.

Looking at growth by business size and sector, mid-sized businesses added 113,000 jobs (up from 78,000 jobs added in April), and large businesses added 57,000 jobs (up from 38,000 jobs in April).

The goods-producing sector added 42,000 jobs in May (up from 12,000 jobs in April) and in the service-producing sector, the U.S. added 205,000 jobs (up from 165,000 jobs in April).

The industries adding the most jobs were professional and business services (88,000 jobs added), trade, transportation and utilities (58,000 jobs), and education and health (54,000 jobs). The two industries that saw a loss in jobs were information (-8,000 jobs) and leisure and hospitality (-11,000).

Looking Ahead

It’s always encouraging to see a healthy jobs report, particularly in the small business sector, as small businesses truly drive our economy forward. For solutions to help you find, hire and manage great talent for your small business, visit

What did you think of today’s ADP employment report? Tweet me at @CBpetej

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