The health and education sector lost 13,000 jobs last month, according to the ADP National Employment Report Economy Lab report released Wednesday.

The drop follows a loss of 23,000 jobs in April. By comparison, the health and education sector added 17,000 jobs in March.

Overall, hiring trends are cooling in the private sector, with just 37,000 jobs added in May, according to the report, which analyzes the payroll transactions of more than 25 million US workers. It is produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

“After a strong start to the year, hiring is losing momentum. Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers,” ADP Chief Economist Nela Richardson said in a press release issued in conjunction with the report.

Service-providing industries gained a net of 36,000 jobs last month, according to ADP. The leisure / hospitality sector had the strongest job gains among service-providing industries, with 38,000 jobs added, followed by the financial activities sector, with 20,000 jobs added, the information sector, with 8,000 jobs added, and the “other services” sector, with 4,000 jobs added. 

Professional / business services saw a decrease of 8,000 jobs on the month, and trade/ transportation / utilities saw a decrease of 4,000 jobs.

Medium-sized companies (defined as having 50 to 499 employees) gained 49,000 jobs in May. Small companies (one to 49 employees) lost 13,000 jobs, and large companies (those with 500 or more employees) lost 3,000 jobs in the month.

The western region of the country gained 37,000 jobs last month, followed by the Midwest, with gains of 20,000. The Northeast, however, saw a decrease of 19,000 jobs, followed by the South, with a decrease of 5,000 jobs.

Pay gains were steady in May, according to ADP.

Annual pay gains for job-stayers were 4.5% last month compared with a year ago, on par with April’s gains. Year-over-year pay gains for job-changers were 7%, compared with 6.9% in April.