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US private payrolls rise more than expected in May

Created at 4 Jun · 3:03 AM5 sources↑ Market-relevant4 events
IN SHORT

US private employers added 122,000 jobs in May, exceeding forecasts. April's figure was revised down to 105,000. Job gains were broad-based, with education and health services leading. Wages rose 4.4% in May.

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Key Numbers

122,000private sector jobs added in May
117,000–120,000forecasted private sector job gains for May
105,000revised private payroll figure for April
8 of 10industry sectors with job gains
4.4%wage growth in May

Who's Involved

ADP
payroll processor reporting May job additions
Reuters
news agency with May job gain forecast
Bloomberg
news agency with May job gain forecast
Nela Richardson
ADP Chief Economist commenting on broad hiring
Oxford Economics
economic analysis firm providing cautious read
Federal Reserve
U.S. central bank monitoring labor market and inflation

↳ Why This Matters

The stronger-than-expected private payroll growth provides mixed signals for the Federal Reserve, potentially delaying interest rate cuts as it balances inflation concerns with labor market conditions.

Key facts

  • US private employers added 122,000 jobs in May.
  • April's private payroll figure was revised down to 105,000.
  • Job gains were broad-based across eight of ten industry sectors.
  • Education and health services led job growth.
  • Wages rose 4.4% in May.

Private employers in the U.S. added 122,000 jobs in May, exceeding forecasts from Reuters (117,000) and Bloomberg (120,000). April's figure was revised down to 105,000 from 109,000. Job gains were broad-based across eight of ten industry sectors, with education and health services leading. ADP's chief economist noted sustained momentum, but Oxford Economics offered a more cautious view, pointing to a decrease in the quits rate and layoff rate. Wages rose 4.4% in May. Separately, April's Job Openings and Labor Turnover Survey showed job openings hit their highest rate since May 2024, but overall hiring declined. Financial markets anticipate the Federal Reserve will hold its benchmark interest rate between 3.50%–3.75% due to ongoing inflation and geopolitical concerns. The official Bureau of Labor Statistics jobs report for May is due Friday, with economists forecasting 85,000 jobs added and an unemployment rate of 4.3%.

Frequently asked questions

US private employers added 122,000 jobs in May, surpassing expectations.

May's addition of 122,000 jobs is higher than April's revised figure of 105,000.

Job gains were broad-based, with education and health services leading the growth.

Financial markets expect the Federal Reserve to hold its benchmark interest rate in the 3.50%–3.75% range, awaiting more data amid inflation and geopolitical concerns.

What Happens Next

01Bureau of Labor Statistics (BLS) May jobs report due Friday.

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Cadence
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How It Developed

3 Jun · 1:55 PM
US private payrolls increased by 122,000 jobs in May, but other indicators suggest stabilizing, not strengthening, labor market conditions.
PiQSuite
3 Jun · 12:45 PM
May private payroll job growth exceeded forecasts, though April's numbers were revised down.
CoinCentral via PiQSuite
3 Jun · 12:28 PM
The new article confirms ADP's May private payroll increase of 122,000 jobs, matching earlier reports.
PiQSuite
3 Jun · 12:18 PM
New ADP report confirms 122K private sector jobs added in May, aligning with consensus.
Seeking Alpha via PiQSuite

Sources

T1
May Jobs Numbers Are In — and They're Better Than Expectedm.piqsuite.com
T1
US private sector adds 122,000 jobs in May, pay rises 4.4%m.piqsuite.com
T1
U.S. private sector adds 122K jobs in May, roughly in line with consensus: ADP jobs reportm.piqsuite.com
T1
US private payrolls rise broadly in Maym.piqsuite.com
T1
US private payrolls increase in May, ADP saysm.piqsuite.com

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