Key facts
- Private employers added 122,000 jobs in May, exceeding economist expectations.
- Job openings rose to 7.6 million in April, the highest in nearly two years.
- Eight of ten sectors saw job gains in May, indicating broad-based hiring.
- The labor market appears to have stabilized, with hiring and quits remaining steady.
- Workers are prioritizing job security over switching, with a narrowed pay premium for job-switchers.
Private employers added 122,000 jobs in May, exceeding the 110,000 expected by economists and marking the strongest hiring month since January 2025, according to ADP. This follows a report that job openings climbed to 7.6 million in April, the highest in nearly two years. Eight of ten sectors saw gains, indicating broad-based hiring. The data suggests the labor market has stabilized, with hiring and quits remaining steady, and workers prioritizing security over switching jobs. This trend, occurring alongside persistent inflation, could create a challenging situation for the Federal Reserve, which is scheduled to meet on June 16-17. Experts suggest that if inflation does not improve, the Fed may adopt a tightening bias as early as July, potentially leading to a rate hike later in the year.
A new Federal Reserve study suggests that the rise of remote work may be making companies less willing to hire inexperienced employees, potentially impacting young workers seeking jobs.