ADP Report: Small Businesses Added 38,000 Jobs in May

Pete Jansons

ADP: Small Businesses Added 38,000 Jobs in May

It may be the start of summer, but hiring has cooled just slightly for small businesses, which added 38,000 jobs in May, according to the latest ADP Small Business Employment Report. This is down from the 62,000 jobs added in April and marks the slowest month of job growth for small businesses so far this year. 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 15,000 jobs and other small businesses (20-49 employees) added 23,000 jobs. (In comparison, each group added 31,000 jobs in April.)

Looking at small businesses by sector, the service-producing sector added 10,000 jobs in May (down from 53,000 jobs in April), while the goods-producing sector added 28,000 jobs (up from 10,000 jobs in April).

Comparison to Overall U.S. Job Growth

Overall job growth in May was slower than the previous month but strong nonetheless. According to the ADP’s National Employment Report, employers across the U.S. added 178,000 jobs in May. Meanwhile, ADP revised April’s job numbers down from 204,000 to 163,000. Still, May marks the 90th straight month of job gains in the U.S.

Looking at growth by business size and sector, mid-sized businesses added 84,000 jobs in May, and large businesses added 54,000 jobs. Looking at sectors, the goods-producing sector added 64,000 jobs in May, and in the service-producing sector, the U.S. added 114,000 jobs.

The industries adding the most jobs in May were professional and business services (61,000 jobs added); construction (39,000); education and health (35,000) trade; and leisure and hospitality (33,000). Trade, transportation and utilities was the only industry that reported losses, at -23,000.

Looking Ahead

Part of the reason for the hiring slow down may be due to the fact that fewer people are looking for work. “The hot job market has cooled slightly as the labor market continues to tighten,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. As a result, finding qualified candidates to fill roles has become significantly harder. If you’re having trouble finding candidates for your open positions, consider these hidden talent pools.

For solutions to help you find, hire and manage great talent for your small business, visit

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