Private-sector hiring increased in May

“The sharpness of the deceleration seems consistent with other incoming data suggesting the economy, weighed down by heightened uncertainty over the European financial crisis and by growing concerns about domestic fiscal policy, slowed early in the year,” he said. 

The job market has disappointed during the past several months after a strong winter of hiring. But economists are expecting summer job creation to pick up again along with economic growth, which they estimated should average about 2.5 percent this year, up from 1.7 percent in 2011. 

Businesses might be wary of adding workers until they see more evidence of a pickup in consumer spending, while Europe struggles with recession. 

The government’s jobs report, due out on Friday, could show that that employers added 160,000 jobs in May, both in the private and public sectors, and that unemployment held steady at 8.1 percent. 

Employment in the private, goods-producing sector added 1,000 jobs while manufacturing employment declined by 2,000 in May — its second consecutive monthly decline, according to the ADP report. 

Construction employment fell by 1,000, the second consecutive decline following six monthly advances, likely driven in part by unusually warm weather during the winter. 

The financial services sector added 8,000 jobs from April to May.

“We hope to see expanded job creation in the future, fueled by greater performance in the goods-producing and service-providing sectors alike,” said Carlos Rodriguez, president and chief executive officer of ADP.

Employment on small payrolls, those with up to 49 workers, was up 67,000, while medium-sized payrolls — those with 50 to 499 workers — rose by 57,000, and large payrolls — those with 500 or more workers — increased by 9,000 jobs.