Key facts
- U.S. private sector employment increased by 122,000 in May.
- The May figure exceeded the forecast of 118,000 jobs.
- April's job additions were revised to 105,000.
- May's job gains were more broad-based than in prior months.
The ADP National Employment Report for May revealed that U.S. private sector employment saw an increase of 122,000 jobs, exceeding the consensus estimate of 118,000. The previous month's data for April was revised to 105,000 jobs added. Unlike prior months where job growth was concentrated, the gains in May were more broad-based. Goods-producing sector jobs decreased by 3,000, while service-providing sector jobs increased by 36,000. Small businesses added 49,000 jobs, medium businesses added 10,000, and large businesses added 40,000. Wage growth for job stayers was 4.4%, and for job changers was 6.5%. The report suggests a modest uptick in hiring activity and sustained momentum, adding to recent optimism following strong JOLTS and ISM manufacturing reports. The author notes increasing risks of an inflation problem fueled by high deficits, tariffs, low immigration, the AI capex boom, and cyclical improvement. The ADP report tracks monthly changes in U.S. private-sector employment using payroll data from over 26 million employees and is released two days before the BLS nonfarm payrolls print.