ADP report shows U.S. gained 128,000 private sector jobs from April to May

June 2 (UPI) -- Private sector non-farm U.S. employment was up by 128,000 jobs from April to May, according to the ADP and Moody Analytics National Employment Report released Thursday.

"Under a backdrop of a tight labor market and elevated inflation, monthly job gains are closer to pre-pandemic levels," ADP chief economist Nela Richardson, said in a statement. "The job growth rate of hiring has tempered across all industries, while small businesses remain a source of concern as they struggle to keep up with larger firms that have been booming as of late."

That small business struggle was evident in the ADP job numbers that show a loss of 91,000 jobs among companies with 1 to 49 employees.

ADP said large businesses with more than 500 employees gained 122,000 jobs.

According to ADP, the service sector gained the most jobs at 104,000 from April to May. Goods producing jobs grew by 24,000 while franchise employment grew by 26,400.

ADP's report is derived from actual data of who is on a company's payroll.

ADP's April report showed private sector job growth of 247,000.