Key facts
- US private sector employment increased by 122,000 jobs in May.
- The May job gain surpassed economists' forecasts of 117,000.
- April's revised job gain was 105,000.
- Job gains were broad-based across businesses of all sizes.
- Education and health services led job additions with 57,000 jobs.
- Year-over-year pay growth for job-stayers was steady at 4.4 percent.
- For job-changers, pay growth slowed to 6.5 percent from 6.6 percent in April.
The ADP National Employment Report indicated that U.S. private sector employment increased by 122,000 jobs in May, surpassing economists' forecasts of 117,000 and marking the largest monthly addition since January 2025. This figure followed a downwardly revised gain of 105,000 jobs in April. Hiring was described as more broad-based in May than in recent years, with sustained momentum heading into the summer hiring season. Trade and transportation industries added the most jobs, while information services experienced the biggest losses. Year-over-year pay growth for job-stayers remained steady at 4.4 percent, while for job-changers, the pace of growth slowed slightly to 6.5 percent from 6.6 percent in April. The ADP report is published ahead of the Bureau of Labor Statistics' more comprehensive employment data. Economists predict nonfarm payrolls likely increased by 85,000 jobs in May, with the unemployment rate forecast to hold steady at 4.3%. Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, noted that other leading indicators for payrolls have weakened, making the labor market's momentum unconvincing.