Private payrolls rose 173,000 in May, according to the ADP Research Institute.
This matched economists’ forecast. April’s payroll gain was revised up by 10,000 to 166,000.
The manufacturing sector lost 3,000 jobs as the overall goods-producing sector lost 1,000 during the month. Services jobs rose by 175,000, up from the prior month.
“Job creation appears to have slowed as we move further into 2016,” said Ahu Yildirmaz, VP and head of the ADP Research Institute.
“Challenging global conditions affecting hiring at large companies and a tightening labor market for skilled workers are among the factors that may be contributing to the slowdown.”
The release comes ahead of the Labor Department’s jobs report on Friday. Some economists anticipate that it would reflect the impact of the Verizon workers’ strike in which more than 30,000 staff left work after a contract dispute.
Unions announced an agreement with the company on Monday.