ADP report says job growth slower in the South

Jobs rates across the country are improving, but in places like Houston, it's slower than others.

While the job market around the United States is doing well, one part of the country is lagging a bit behind, according to ADP's monthly Regional Employment Report.

The report for May shows a growth of 201,000 private sector jobs added around the country, with the majority of those hires going to small businesses that have fewer than 50 employees. Only six percent of the new jobs – 13,000 hires – were for large companies that employ 500 or more people.

Oil prices making an impact

However in the South, hiring was not at the rate of the rest of the country. The region only saw a 14 percent boost, compared to a 16 percent rise in the Midwest and Northeast and a 22 percent spike in the West. Ahu Yildirmaz, VP and head of the ADP Research Institute, said that the price of oil played a major role in the lower numbers for the South.

"Job growth in the South continues to slow due to lower oil prices as evidenced by the fact that for the past two months Texas has had its fewest job gains since February 2010," Yildirmaz said in the company's press release. "The growth rates in both the Midwest and the Northeast surpassed that of the South in May. The last time both these regions grew faster than the South was July 2011."

The June reports from the Bureau of Labor Statistics show that overall, the South is still doing as well as the rest of the country in terms of employment. The national unemployment rate is 5.4 percent, while in the West South Central Division – which is made up of Arkansas, Louisiana, Oklahoma and Texas – only 4.7 percent of the population was without a job in April.

The region of the country with the largest unemployment is the West, at 5.8 percent, according to stats released by the Department of Labor May 27.

ADP stated that the West South Central Region added 13,200 jobs in April, which is good but considerably lower than the 21,400 positions it had added on average over the six previous months.

Decline in work for manufacturers 

Among specific fields examined by the ADP study, manufacturing recruiters did not have as much luck finding their clients jobs as others. The report states that manufacturing jobs fell by 5,000 during the month, thanks in large part to the inclement weather in much of the country, including heavy rains and flooding in Texas.

Operations recruiters had more success, as 192,000 jobs in the service sector were created during the month.

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