Private-sector employment increased by 178,000 in May, on a seasonally adjusted basis, ADP estimated Wednesday.

In April, ADP says 163,000 jobs were added, compared to its previous estimate of 204,000.

Economists surveyed by IFR Markets projected a 187,000 job gain for May.

“The hot job market has cooled slightly as the labor market continues to tighten,” according to Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. ““Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well.”

“Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions,” said Mark Zandi, chief economist of Moody’s Analytics. “Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem.”

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Gary Siegel

Gary Siegel

Gary Siegel has been at The Bond Buyer since 1989, currently covering economic indicators and the Federal Reserve system.